Merck & Co and Sun Pharmaceutical Industries through their respective subsidiaries, announced an exclusive worldwide licensing agreement for Merck's investigational therapeutic antibody candidate, Tildrakizumab (MK-3222). Tildrakizumab is currently being evaluated in Phase 3 registration trials for the treatment of chronic plaque psoriasis, a skin ailment.
Sun Pharma will acquire worldwide rights to Tildrakizumab for use in all human indications from Merck in exchange for an upfront payment of USD 80 million. Merck will continue all clinical development and regulatory activities, which will be funded by Sun Pharma.
Sun Pharma will be responsible for regulatory activities, including subsequent submissions, pharmacovigilance, post approval studies, manufacturing and commercialization of the approved product. Merck is eligible to receive undisclosed payments associated with regulatory (including product approval) and sales milestones, as well as tiered royalties ranging from mid-single digit through teen percentage rates on sales.
D. Dukes, Ph.D., senior VP, business development and licensing, Merck Research Laboratories, said 'Consistent with our previously announced global initiative to sharpen our commercial and R&D focus, including prioritizing our late stage pipeline candidates, we are pleased to enter into this agreement with Sun Pharma to help realize the potential of tildrakizumab for patients with chronic plaque psoriasis.'
'Sun Pharma is very pleased to enter into this collaboration with Merck, a recognized leader in the field of inflammatory/immunology therapies, for this late-stage candidate for chronic plaque psoriasis,' said Kirti Ganorkar, senior vice president, Business Development, Sun Pharma. 'This collaboration is a part of our strategy towards building our pipeline of innovative dermatology products in a market with strong growth potential.'
The transaction is subject to customary closing conditions, including the requirements
under the Hart Scott-Rodino Antitrust Improvements Act.
Shares of the company declined Rs 5.60, or 0.70%, to settle at Rs 792.30 at the BSE (Wednesday).
