Merck KGaA licenses US rights to tesamorelin from Theratech

EMD Serono, a US subsidiary of Germany's Merck KGaA, has exclusively licensed Theratechnologies' tesamorelin treatment for excess abdominal fat in HIV patients with lipodystrophy in the USA. Under the terms of the agreement, Theratech will retain rights to the drug in the rest of the world and receive royalties and milestones, along with an upfront payment from Merck of $30.0 million, which includes an $8.0-million equity investment, providing Merck with a 3.6% stake in the firm. Theratech will conduct all R&D for any additional indications, but Merck retains the option to co-develop and commercialize or co-commercialize these in the USA.