Ablynx in 335M-euro deal with Merck KGaA

Merck Serono, a division of Germany's Merck KGaA, has entered into an agreement with Ghent, Belgium-based Ablynx to co-discover and co-develop Nanobodies against two targets in oncology and immunology.

Under the terms of the agreement, both companies will equally share all R&D costs. Ablynx will get an upfront cash payment of 10.0 million euros ($14.6 million) and be eligible to receive 50% of the resulting profits. In addition, Ablynx will have an option to opt-out partly or fully during the R&D programs, in which case the company would be eligible to receive either a reduced profit share in the case of a partial opt-out or milestones and royalties on potential sales in the case of a full opt-out. Total development and commercial milestones could reach up to 325.0 million euros should a product be approved in multiple indications in all major markets.

Nanobodies are a new class of therapeutic proteins that contain the unique structural and functional properties of naturally-occurring single domain antibodies. The firms will collaborate to research and develop nanobody-based therapeutics against two disease targets.