CDA-1 and CDB-1 were co-developed by Medarex and Massachusetts Biologic Laboratories (MBL).
Under the terms of the agreement, Merck gains worldwide rights to develop and commercialize CDA-1 and CDB-1. Medarex and MBL will receive an upfront payment of $60 million and are potentially eligible to receive additional cash payments up to $165 million upon achievement of certain milestones associated with the development and approval of a drug candidate covered by this agreement.
Upon commercialization, Medarex and MBL will also be eligible to receive double-digit royalties on product sales and milestones if certain sales targets are met. In accordance with the co-development agreement between Medarex and MBL, all payments will be divided equally.
Tony Ford-Hutchinson, senior vice president and franchise head of infectious diseases and vaccines at Merck Research Laboratories, said: “Clostridium difficile infection is the primary cause of infectious diarrhea in hospitalized elderly patients in developed countries.
“This agreement underscores Merck’s ongoing commitment to infectious disease and our strategy of licensing promising candidates with the potential to address serious unmet medical needs.”