Biotech Values

[DewDiligence]

MRK exercises license option for NASH drug from—(private)—NGM Biopharmaceuticals, pursuant to 2015 deal (#msg-111075304):

https://finance.yahoo.com/news/merck-exercises-option-ngm-bio-113000145.html

Merck…and NGM Biopharmaceuticals…today announced that Merck has exercised its option to license NGM313, an investigational monoclonal antibody agonist of the ß-Klotho/FGFR1c receptor complex that is currently being evaluated for the treatment of nonalcoholic steatohepatitis (NASH) and type 2 diabetes.

…With the exercise of this one-time option, which was triggered by NGM’s completion of a proof-of-concept clinical study of NGM313, Merck gains exclusive worldwide rights to develop, manufacture and commercialize NGM313, now renamed MK-3655, and related compounds.

In connection with the option exercise, NGM received a $20 million payment from Merck. NGM retains an option, at the initiation of the first Phase 3 clinical trial for MK-3655, to participate in up to 50 percent of a global cost and revenue sharing arrangement for MK-3655. If NGM does not exercise its option, NGM is eligible for further payments associated with the progress of MK-3655 development, as well as commercial milestone payments and tiered royalties ranging from low double digit to mid-teen percentage rates on product sales.

Note: NGM313 is not the same drug as NGM282 (#msg-140043983).