Ablynx and Merck Serono sign third nanobody agreement

Published: 9-Nov-2011

The firms will co-develop nanobodies against two targets in osteoarthritis


Ablynx of Belgium has further expanded its relationship with Merck Serono and has entered into a third agreement to co-discover and co-develop nanobodies against two targets in osteoarthritis. The firms will exploit the unique features of the nanobodies and develop multi-specific products, which have extended half-lives.

Under the terms of the agreement, Ablynx will receive an upfront payment of €20m payable in two instalments over the next three months and will be responsible for all activities and costs for each programme, excluding manufacturing costs and costs relating to certain in vivo models, up to the delivery of the pre-clinical package that will form the basis of an Investigational New Drug (IND) filing.

Ablynx is entitled to receive a further €15m for each programme if Merck Serono accepts the pre-clinical packages. At that point, Ablynx has the option to continue with Merck Serono on a 50:50 co-development basis and share the resulting profits, or to convert this collaboration into an exclusive, worldwide licensing deal with milestone payments and tiered royalties.

‘We are impressed by the speed with which Ablynx has progressed in our ongoing programmes and we believe they could become a valuable source of new drug candidates for Merck Serono,’ said Bernhard Kirschbaum, head of global discovery and early development at Merck Serono.

‘We believe that the specific features of the nanobodies have the potential to address key challenges in the treatment of osteoarthritis.’

Edwin Moses, chairman and ceo of Ablynx added: ‘We are very pleased to have entered into a third agreement with Merck Serono a year after entering into our second collaboration.’

Merck Serono and Ablynx entered into their first agreement in 2008 to co-discover and co-develop nanobodies against two disease targets in oncology and immunology. In October 2010, they signed a second agreement to co-discover and co-develop nanobodies against an inflammatory disease target.

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