Biomira licenses cancer vaccine to Merck KGaA

Merck KGaA of Germany and Canada's Biomira have entered into what isclaimed to be one of the largest cancer vaccine collaborations to date, involving the global development and US co-promotion of Biomira's Theratope and BLP25 vaccines for the treatment of breast cancer and non-small cell lung cancer, respectively. The value of the 15-year deal to Biomira could amount to about $150 million in license fees, milestone payments and equity investments, the firm said, and will involve Merck taking an initial 5% stake in Biomira, which could rise to 19% as the collaboration progresses.

The Theratope vaccine, which the US Food and Drug Administration has designated a fast-track development program, is currently in a Phase III clinical trial involving 1,000 patients with metastatic breast cancer. Meanwhile, the BLP25 vaccine is in a 166-patient Phase IIb clinical trial to determine whether or not it induces a T-cell mediated immune response that will translate into a clinical benefit for the treatment of non-small cell lung cancer.

Under the agreement, Merck and Biomira will jointly market the two products in the USA. Biomira will retain marketing rights in Canada, but Merck will gain exclusive development and marketing rights in the rest of the world. The Canadian firm will manufacture the vaccines for worldwide use and will be entitled to an equal share on product sales in the USA and Canada, and royalties on sales for all other territories.