It's A Snowy Thursday, On The Great Lakes... But Warm Here, As Merck Inks A Biggish BioBucks Deal, With Kelun...

It should be noted that Merck will, in addition, make a "terms withheld" (as immaterial to Merck) equity investment in Kelun.

This is quite a deal -- if the idea of antibiotic drug conjugates / candidates for oncology pans out.

And smartly, it means Mr. Davis pays only nominal amounts if the programs flame out. This is deal number three, between the companies, on these topics. Here's the latest, from FierceBiotech:

. . .The exclusive licensing deal, announced Thursday, marks the third antibody-drug conjugate agreement between the two companies. Under the latest arrangement, the two companies will develop seven ADCs for cancer. Merck snagged the right to research, develop, manufacture and commercialize the ADCs and placed a hold on future candidates with an exclusive opt-in agreement. Kelun-Biotech, a subsidiary of Sichuan Kelun Pharmaceutical, will hang on to rights in mainland China, Hong Kong and Macau.

The small upfront fee stands in stark contrast to the multibillion total offering should all go well with the ADCs. The $9.3 billion will be distributed based on future development, regulatory and sales milestones if Kelan-Biotech does not retain the China, Hong Kong and Macau rights and if all candidates achieve approval. That’s a pretty big if; the likelihood that all seven now-preclinical therapies will make it to the market is slim. . . .

Now you know. . . on to a quiet mountain bike riding Thursday. . . at least, until my skiers arrive from Aspen, into the cacti, tonight. Woot!

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