As part of the deal, Agenus will discover and optimize fully human antibodies against two undisclosed Merck checkpoint targets using the 4-Antibody Retrocyte Display platform, while Merck will be responsible for clinical development and commercialization of the new candidates.
Agenus chief scientific officer Bob Stein said the company is happy to be working with Merck, who is a leader in the rapidly developing immuno-oncology space.
"We believe our Retrocyte Display technology has significant advantages for creation of high quality antibody development candidates," Stein said.
"This collaboration broadens our efforts in immuno-oncology beyond our previously disclosed checkpoint programs with a world-class research and development partner."
The deal will see Agenus eligible of receiving about $100m in potential payments related with the completion of certain clinical, regulatory and commercial milestones for two candidates from Merck.
Additionally, Agenus is also eligible to receive royalty payments on worldwide product sales.
Merck Research Laboratories vice president of clinical oncology Eric Rubin said the collaboration with Agenus complements the company’s active immuno-oncology discovery programs.
"We look forward to working to advance these programs with the potential to address the unmet medical needs of people with cancer," Rubin said.
In February 2014, Agenus acquired 4-Antibody, a private European-based biopharmaceutical company.
Assets of 4-Antibody include the Retrocyte Display technology platform for discovery and optimization of fully human antibodies against a wide array of molecular targets.
Currently, the company has multiple preclinical checkpoint modulator programs in development including GITR and OX40 agonists and antagonists of TIM-3, LAG-3, PD-1 and CTLA-4.
The company is carrying out these programs through a strategic collaboration with Ludwig Cancer Research.