Biotech Values

[DewDiligence]

MRK collaborates with (private) NGM to develop “diabesity” drugs:

http://www.wsj.com/articles/merck-to-team-with-ngm-to-develop-diabetes-treatment-1424695654

Merck & Co. Inc. said Monday that it has entered a five-year collaboration with NGM Biopharmaceuticals Inc. to research and develop drugs that treat diabetes and obesity, in the drug company’s latest bid to introduce new products.

Merck will pay NGM $95 million and buy a 15% equity stake for $106 million. This price per share represents a 20% premium to the privately-held NGM’s most recent financing. Merck will commit up to
$250 million to fund NGM, with the potential for additional funding.

The collaboration includes NGM drug candidates that are in preclinical development. NGM will lead the research, while Merck will license the resulting programs and lead global product development and commercialization. NGM has full authority to control research and development.