NGM Biopharma, Merck Amend Development Pact To Focus On Retinal, Cardiovascular & Metabolic Targets
NGM Biopharmaceuticals Inc (NASDAQ: NGM) has amended and restated an agreement with Merck & Co Inc (NYSE: MRK) to extend their ongoing collaboration through March 2024 with a narrower scope.
The collaboration will focus primarily on developing treatments for retinal and cardiovascular & metabolic (CVM) diseases, including heart failure.
The amended collaboration's primary focus on retinal and CVM diseases builds upon progress with NGM621 and MK-3655, both discovered by NGM under the partnership.
Merck retains an option to license those programs being advanced under the amended collaboration.
NGM gains worldwide rights to its disclosed oncology portfolio and all preclinical and current, and future research assets falling outside of the amended collaboration's narrower scope, subject to a low single-digit net sales royalty to Merck.
Under the terms of the amended collaboration, Merck will provide approximately $120 million in R&D funding to NGM through March 2024, including $86 million for the period from April 2021 through March 2022, plus additional potential option payments if Merck exercises any license option.
Price Action: NGM shares are up 5.93% at $20.89, and MRK stock is up 0.24% at $77.96 during the market session on the last check Thursday.
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