Merck, NGM Bio Extend Therapeutics Collaboration to 2022

   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)

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