Merck invests $450m in NGM Biopharma
pharmafile | February 23, 2015 | News story | Sales and Marketing | Merck, NGM Biopharma, NP201, diabetes, nonalcoholic steatohepatitis, obesity
Merck is to collaborate on drug development with biotech firm NGM Pharmaceuticals in a $450 million deal.
The collaboration will cover several of NGM’s in-development candidates, including diabetes, obesity and nonalcoholic steatohepatitis drug NP201 – although its lead programme for primary biliary cirrhosis treatment NGM282 is not part of the deal.
NGM will lead the R&D on these existing candidates while Merck will have the option to license promising late-stage programmes and lead the commercialisation of approved products.
“NGM has developed a uniquely powerful research programme that has permitted identification of novel, and quite consequential, pathways for metabolic regulation,” says Dr Roger Perlmutter, president of Merck Research Laboratories.
“Through this new collaboration, we hope to apply Merck’s well-established translational capabilities to advance innovative biologics that address the needs of patients suffering from diabetes, metabolic dysregulation, and malignancy.”
Under the terms of the deal Merck will pay $94 million upfront to NGM and will purchase a 15% equity stake in the company for $106 million. Merck will also commit up to $250 million to fund all of NGM’s efforts under the initial five-year term of the collaboration, with the potential for additional funding if certain conditions are met.
If Merck initiates a Phase III study for a licensed programme, NGM may elect to either receive milestone and royalty payments or, in certain cases, co-fund development and participate in a global cost and revenue share arrangement of up to 50 per cent.
NGM will also have the autonomy to identify and pursue other discovery programmes at its own discretion.
William Rieflin, chief executive of NGM, says: “We are very pleased to establish this alliance with Merck, which will be transformational for NGM, providing us with the resources and flexibility to pursue our ambitious research and development goals while preserving our unique drug discovery culture.
“We look forward to working with Merck to generate a robust pipeline of therapies with the potential to make a significant difference in the lives of patients.”
George Underwood
Related Content
FDA approves Wegovy for treatment of MASH in adults with liver fibrosis
The US Food and Drug Administration (FDA) has granted accelerated approval for Wegovy (semaglutide) as …
Lilly reports positive results from trial of obesity candidate
Eli Lilly and Company (Lilly) has announced topline results from its phase 3 ATTAIN-1 trial, …
MetP Pharma releases positive data on intranasal semaglutide administration
MetP Pharma has released new data highlighting the advantages of its MetP technology in delivering …
