Under the terms of the agreement, Merck, through an affiliate, will pay Insmed $130 million in cash to acquire all rights to the Boulder facilities and Insmed’s pipeline of follow-on biologic candidates. The Boulder facilities comprise 50,000 square feet of biologics process development analytical laboratory and manufacturing facilities.
Insmed’s follow-on biologics portfolio includes INS-19, an investigational recombinant granulocyte-colony stimulating factor (G-CSF) that will be evaluated in Phase III clinical trials for its ability to prevent infections in patients with cancer receiving chemotherapy and INS-20, a pegylated recombinant G-CSF designed to allow for less frequent dosing, that is currently in Phase I clinical trials.
The agreement provides for initial payments of up to $10 million for INS-19 and INS-20. Merck will pay Insmed the remaining balance upon closing of the transaction, without any further milestone or royalty obligations. Merck plans to offer positions to staff at the Boulder facilities.
Frank Clyburn, senior vice president and general manager of Merck BioVentures, said: “Insmed’s pipeline of follow-on biologic candidates presents the opportunity to expedite Merck’s entry into the biologics marketplace as well as providing unique manufacturing resources and an experienced team of protein experts. This agreement represents a strong strategic fit for Merck as we aggressively expand and advance our portfolio of developmental follow-on biologics.”