Nanobodies are a new class of therapeutic proteins that contain the unique structural and functional properties of naturally occurring single domain antibodies.
The partners will collaborate to research and develop Nanobody-based therapeutics against two disease targets exploiting some of the key benefits Nanobodies have over conventional antibodies and other fragments.
Under the terms of the agreement, both companies will equally share all R&D costs. Should Ablynx contribute equally to each program, it will be eligible to receive 50% of the resulting profits.
In addition, Ablynx will have an option to opt-out partly or fully during the R&D programs, in which case the company would be eligible to receive either a reduced profit share, in the case of a partial opt-out, or milestones and royalties on potential sales, in the case of a full opt-out.
Total development and commercial milestones, depending on the point of opt-out by Ablynx, could reach up to E325 million should a product be approved in multiple indications in all major markets.
Bernhard Kirschbaum, executive vice president of research at Merck Serono, said: “This collaboration reinforces our commitment to deliver innovative treatments in areas of high unmet medical needs. We believe that Nanobodies have the potential to provide innovative drugs combining the best features of monoclonal antibodies and small molecules, and we look forward to working with Ablynx.”