- Merck (NYSE:MRK) enters into a multi-year collaboration agreement with South San Francisco, CA-based NGM Biopharmaceuticals to discover, develop and commercialize novel biologic therapies across a wide range of therapeutic areas. The deal includes multiple NGM drug candidates currently in preclinical development such as NP201 for the potential treatment of diabetes, obesity and nonalcoholic steatohepatitis (NASH).
- NGM's lead product candidate is NGM282, an Orphan Drug- and Fast Track-designated optimized form of fibroblast growth factor 19 (FGF19). In preclinical animal models, it significantly reduced blood glucose and body weight and improved insulin sensitivity.
- NGM will lead the research and development of the existing preclinical candidates and will have the autonomy to pursue other discovery-stage programs at its discretion. Merck will have the option to license all resulting NGM programs following human proof-of-concept trials. If it exercises its option, Merck will lead global product development and commercialization for product(s), if approved.
- Under the terms of the agreement, Merck will pay NGM an upfront payment of $94M and purchase a 15% equity stake in NGM for $106M. It also commits up to $250M to fund all of NGM's efforts under the initial five-year term of the partnership. Prior to Merck initiating a Phase 3 trial for a licensed candidate, NGM may elect to either receive milestone and royalty payments or, in certain cases, to co-fund the development and share in global cost and revenues up to 50%.
- NGM will host a conference call this morning at 9:30 am ET to discuss the deal.