MorphoSys and S-P enter 3 year R&D deal

German synthetic antibody specialist MorphoSys AG has signed an initial two-year license agreement with US drugmaker Schering-Plough for the use of the former's HuCAL GOLD technology in the R&D of human therapeutic antibodies.

Under the terms of the deal, S-P gains access to MorphoSys' proprietary antibody library for use at one research site. Furthermore, the contract provides the US firm with the option to develop HuCAL-derived therapeutic antibodies against up to 10 disease-related targets. In return, MorphoSys will receive an up-front payment, annual user fees and optional R&D funding. For therapeutic antibody projects undertaken by S-P, MorphoSys is eligible to receive license and milestone payments related to the successful advancement of projects in clinical development, and royalties on HuCAL antibodies developed under the agreement. Further financial details were not disclosed.

During the initial two-year term of the accord, which also provides S-P with the option of an extension of up to three more years, MorphoSys' HuCAL GOLD antibody library will be installed at Schering-Plough's research site in Palo Alto, California, the location of Schering-Plough Biopharma, an affiliate of the US firm.