Agensys and Merck Announce Agreement to Co-Develop and Commercialize a Novel Antibody for Cancer Therapy
Agensys, Inc., a cancer biotechnology company, and Merck & Co., Inc. announced that they have formed a global alliance to jointly develop and commercialize AGS-PSCA, Agensys' fully human monoclonal antibody (MAb) to Prostate Stem Cell Antigen (PSCA).
The agreement grants Merck worldwide rights to AGS-PSCA and an exclusive license to PSCA, a proprietary Agensys target, as well as rights to other therapeutic and diagnostic products developed under the alliance. Under the terms of the agreement, Merck will make an initial cash payment to Agensys of $17.5 million and, subject to the achievement of certain events, further payments of $11.5 million over the following 12 months. The successful development and launch of AGS-PSCA would trigger milestone payments of $95.0 million that could increase to more than $170 million if multiple oncology indications are successfully developed and approved. Agensys would also receive royalties on worldwide sales. Further financial terms were not disclosed.
Merck and Agensys will co-develop and jointly fund AGS-PSCA for prostate cancer and other indications through Phase II. Agensys has initiated a Phase I clinical trial of AGS-PSCA in patients with advanced prostate cancer at Memorial Sloan-Kettering Cancer Center and Johns Hopkins Kimmel Cancer Center. Agensys manufactured the clinical trial supplies used in this study and will continue to manufacture AGS-PSCA until production can be transferred to Merck. Merck will lead the future worldwide clinical development program with significant participation by Agensys. Merck has primary responsibility for both commercialization and commercial manufacture. Agensys has an option to participate in Phase III development and commercialization in the United States.
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