Merck and Kelun-Biotech, a holding subsidiary of Sichuan Kelun Pharmaceutical, a clinical-stage biotech company focused on biologic and small molecule discovery and development, have entered into an exclusive license and collaboration agreement to develop seven investigational preclinical antibody-drug conjugates – ADC – for the treatment of cancer. Under the agreement, Kelun-Biotech has granted Merck exclusive global licenses to research, develop, manufacture and commercialize multiple investigational preclinical ADC therapies and exclusive options to obtain additional licenses to ADC candidates. Kelun-Biotech retains the right to research, develop, manufacture and commercialize certain licensed and option ADCs for mainland China, Hong Kong and Macau. Kelun-Biotech will receive an upfront payment of $175M from Merck. Kelun-Biotech is also eligible to receive future development, regulatory and sales milestone payments totaling up to $9.3B. Merck also intends to make an equity investment in Kelun-Biotech. The transaction is subject to customary closing conditions and shareholder approvals.
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