4D Pharma Enters Vaccine Collaboration With Merck & Co.
October 08 2019 - 4:55AM
Dow Jones News
By Sarah Sloat
4D Pharma plc (DDDD.LN) said Tuesday that it has entered a
vaccine collaboration with Merck & Co. (MRK), in which it could
receive more than $347.5 million in payments and may lead to Merck
taking a stake in the U.K. company.
The research-collaboration and option-to-license agreement is
specifically with MSD, a trade name of Merck, 4D said. As part of
the deal, 4D aims to discover and develop live biotherapeutics, a
class of medicines, as vaccines in up to three indications. The
U.S. Federal Drug Administration defines live biotherapeutics as
products containing a live organism--such as bacteria--used for the
prevention, treatment or cure of a disease.
The deal gives 4D the right to have MSD purchase $5 million in
ordinary 4D shares in the first year of collaboration, subject to
certain conditions. On top of an upfront cash payment for each
indication, 4D will be eligible to receive up to $347.5 million in
option exercise and development and regulatory milestone payments,
and tiered royalties on annual net sales of any licensed products
resulting from the collaboration, it said.
MSD will be responsible for development, manufacturing and
commercialization following the exercise of any of exclusive
options, 4D said.
Write to Sarah Sloat at sarah.sloat@wsj.com
(END) Dow Jones Newswires
October 08, 2019 04:40 ET (08:40 GMT)
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