EMD Serono Snags US license for Tesamorelin From Theratechnologies

| About: Merck KGaA (MKGAY)

Theratechnologies and EMD Serono, US arm of Merck KGaA (OTCPK:MKGAY), announced they have entered into a collaboration and licensing agreement for the exclusive commercialization rights to tesamorelin in the United States for the treatment of excess abdominal fat in HIV patients with lipodystrophy. Theratechnologies retains all tesamorelin commercialization rights outside of the US.

Tesamorelin is a growth hormone-releasing factor analogue with therapeutic potential in a variety of anabolic and lipolytic indications and is in the final stages of its second Phase 3 clinical trial to assess the safety and efficacy when used to reduce visceral adipose tissue in HIV patients with lipodystrophy. The purpose of the study is to confirm the results of the first Phase 3 study, concluded in October 2007.

Upfront: $30M
Equity Investment:$8M (3.6% ownership; $3.67/share)
Milestones: $185M

Theratechnologies will be responsible for conducting research and development for additional indications. EMD Serono will have the option to co-develop and commercialize additional indications for tesamorelin in the US. EMD Serono will equally share in the development costs related to such additional indications if it exercises its option. Theratechnologies will, in such case, also have the right, subject to EMD Serono’s agreement, to opt to co-promote such additional indications.

Theratechnologies Inc. and EMD Serono, Inc. Announce Collaboration and Licensing Agreement for Tesamorelin in the United States; to Receive up to $215 Million
-(Via BioSpace.com Featured News and Stories.)