Sun Pharmaceutical Industries and Merck & Co (known as MSD outside the U.S. and Canada) through their subsidiaries entered an exclusive worldwide licensing agreement for Merck’s investigational therapeutic antibody candidate, tildrakizumab (MK-3222), which is being evaluated in Phase 3 registration trials for treatment of chronic plaque psoriasis, a skin ailment.
Under the agreement, Sun will get worldwide rights to tildrakizumab for use in all human indications from Merck in exchange for an upfront payment of $80 million, a joint statement says.
Merck will continue all clinical development and regulatory activities, which will be funded by Sun and upon product approval, Sun will be responsible for regulatory activities, including subsequent submissions, pharmacovigilance, post approval studies, manufacturing and commercialization of the approved product.
Merck is eligible to receive undisclosed payments associated with regulatory (including product approval) and sales milestones as well as tiered royalties ranging from mid-single digit through teen percentage rates on sales, the statement adds.
Tildrakizumab is an investigational humanized, anti-IL-23p19 monoclonal antibody that binds specifically to IL-23p19.
“This collaboration is a part of our strategy towards building our pipeline of innovative dermatology products in a market with strong growth potential,’’ Kirti Ganorkar, Senior VP, Business Development, Sun Pharma, said in a statement.
On the BSE on Wednesday, Sun moved up to a high of Rs.811.65 in early trade before reacting to close at Rs.792.3, down 0.7 per cent.
