Merck, NGM Bio Extend Therapeutics Collaboration to 2022
March 20 2019 - 8:01AM
Dow Jones News
By Colin Kellaher
Merck & Co. (MRK) on Wednesday said it exercised its option
to extend the research phase of its collaboration with NGM
Biopharmaceuticals Inc. by two years from March 2020 to March
2022.
The Kenilworth, N.J., drug maker said it will continue to fund
NGM's research and development efforts at similar levels to the
original collaboration terms, adding that it will make up to $20
million in additional payments during the two-year extension period
in lieu of the $20 million extension fee payable to NGM.
Merck made an upfront payment of $94 million to NGM and bought a
15% stake in the clinical-stage biopharmaceutical company for $106
million when the companies formed their collaboration in early
2015. Merck also committed up to $250 million to fund all of NGM's
efforts under the initial five-year term.
Merck said it retains an option exercisable in 2021 for another
two-year extension of the collaboration, which is aimed at
discovering, developing and commercializing novel biologic
therapeutics across a range of areas.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 20, 2019 07:46 ET (11:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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