By Joshua Kirby

 

Merck KGaA said Tuesday that it has agreed to outlicense the clinical-stage program of a potential osteoarthritis treatment to Novartis AG in a deal that could see the German pharmaceuticals and chemicals company receive a total 450 million euros ($530.4 million).

Under the deal, Merck will outlicense to the Swiss drug maker the Phase-2-ready M6495 treatment for further evaluation on patients suffering from osteoarthritis. Merck will receive an initial EUR50 million upfront, with a further EUR400 million payable depending on certain development and commercial milestones and royalties on future sales, it said.

M6495 is an anti-ADAMTS5 Nanobody that could, as a self-administered treatment, maintain the integrity of knee joints and reduce pain caused by osteoarthritis, Merck said.

 

Write to Joshua Kirby at joshua.kirby@dowjones.com

 

(END) Dow Jones Newswires

October 06, 2020 08:55 ET (12:55 GMT)

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