Merck Serono, Ablynx Enter Nanobodies Pact

Merck Serono has entered into an agreement with Ablynx to discover and develop Nanobodies against two targets in oncology and immunology. The agreement includes an upfront cash payment to Ablynx of  $14.5 million.
   
Nanobodies are a new class of therapeutic proteins that contain the structural and functional properties of naturally occurring single domain antibodies. The partners will collaborate to research and develop Nanobody-based therapeutics against two disease targets.
   
Under the terms of the agreement, the companies will share all R&D costs. Ablynx will be eligible to receive half of the resulting profits from each program, depending on its participation. Ablynx will have an option to opt-out of the development programs, in which case the company would be eligible to receive either a reduced profit share, or milestones and royalties on potential sales. Total development and commercial milestones could reach as much as $470 million depending on product approvals and multiple indications in all major markets.
   
“We are very pleased to enter into this partnership with Merck Serono, a recognized global leader in the treatment of oncology and immunology therapies. This type of risk and reward sharing collaboration underlines Ablynx’s maturing capabilities and collaboration strategy, whereby we can leverage on the resources and expertise of our partners to advance Nanobodies more quickly into the clinic while retaining an equal share of the value created,” commented Dr. Edwin Moses, chief executive officer and chairman of Ablynx.