Merck KGaA takes $5 mill stake in ImClone

Merck KGaA of Germany has made a $5 million equity-based payment to theUSA's ImClone Systems as part of the early achievement of a clinical development milestone involving the latter's anticancer drug IMC-C225 (cetuximab). Merck has marketing rights to the treatment outside of North America, with the exception of Japan, where the companies will co-develop the drug.

The payment relates to the presentation by ImClone of positive data from its Phase II clinical study of IMC-C225 in combination with irinotecan in patients with irinotecan-refractory colorectal cancer (Marketletter May 21). Under the terms of the agreement, Merck KGaA will be issued approximately 63,000 Imclone shares at a price of $79.33 per share, plus a 50% premium based on the achievement coming earlier than specified in the agreement.