Ablynx signs cancer immunotherapy collaboration, licensing agreement with Merck

The new deal is focused on the discovery and development of several predefined Nanobody candidates (including bi- and tri-specifics) directed toward ‘immune checkpoint modulators’.

Immune checkpoint modulators are proteins believed to provide potential targets for the development of cancer immunotherapies, a rapidly emerging approach to the treatment of a wide range of cancer types.

As part of the deal, Ablynx will receive an upfront payment of EUR20m and up to EUR10.7m in research funding during the initial three year research period of the collaboration.

Additionally, Ablynx is eligible to receive development, regulatory and commercial milestone payments on achieved sales thresholds for a number of products with ultimate potential to accrue as much as EUR1.7bn plus tiered royalties.

Under the deal, Merck will be responsible for the development, manufacturing and commercialization of any products resulting from the collaboration.

Ablynx CEO Edwin Moses said the company is happy to have expanded its relationship with Merck beyond the collaboration we signed in 2012.

"It demonstrates the potential of our Nanobody platform and how it can be used to discover and develop therapeutics in important areas of unmet medical need," Moses said.

"The collaboration will benefit from the world-class resources and expertise that Merck has in the immuno-oncology field and we look forward to a fruitful and successful partnership in the development of these new therapeutic candidates."

Merck Research Laboratories president Roger Perlmutter said the deal positions the company to expand its early oncology pipeline by developing innovative candidates based on Ablynx’s Nanobody technology.

"This second agreement builds beyond our ongoing collaboration in neuroscience and is consistent with Merck’s focus on developing candidates with the potential to make a meaningful difference in the lives of patients," Perlmutter said.