With respect to the ongoing development of atacicept, an investigational drug for the treatment of various autoimmune diseases and B-cell malignancies, ZymoGenetics has exercised its contractual right to convert to a worldwide royalty license. By making this election, ZymoGenetics will no longer be responsible for funding development costs, and Merck Serono will fund 100% of the program costs on a worldwide basis.
In exchange, Merck Serono will now have exclusive worldwide development and commercialization rights for atacicept, including in North America. Merck Serono will make milestone payments to ZymoGenetics, as agreed in the initial contract between the two companies signed in 2001. ZymoGenetics will also be eligible to receive undisclosed royalties on worldwide net sales.
The companies also revised their research alliance to achieve greater operational efficiencies. ZymoGenetics will now control the development and commercialization of IL-31mAb, and Merck Serono will have the full responsibility for developing and commercializing IL-17RC. Both compounds are drug candidates for the treatment of inflammatory diseases.
Future product candidates resulting from the companies’ activities under the research alliance will be exclusively licensed for development and commercialization to either ZymoGenetics or Merck Serono.
Douglas Williams, president of ZymoGenetics, said: “We believe that atacicept holds tremendous promise as a potential treatment for autoimmune diseases. The broad, parallel path of development in lupus, multiple sclerosis, and rheumatoid arthritis could result in the most rapid availability of this drug to patients around the globe.
“Converting to a royalty position on atacicept allows ZymoGenetics to avoid a major capital commitment, reduce expenses and preserve cash over the next several years, while securing the value of our atacicept asset.”