The transaction includes an initial upfront payment in addition to committed R&D payments. Ambrx will also be eligible to receive future milestone payments associated with research, development and commercialization of a drug candidate resulting from the collaboration along with royalties on net sales. Ambrx also has the right to exercise an ‘end of Phase II’ profit-sharing option. Additional terms of the agreement were not disclosed.
Stephen Kaldor, Ambrx’s president and CEO, said: “We are pleased to enter into this agreement with Merck, a world leader in the metabolic diseases field with a proven track record in the rapid development and launch of diabetes medicines. We are excited about the potential of our initial FGF-21 protein drug candidates, as they promise unique pharmacological efficacy in the treatment of diabetes, a disease of large and rapidly increasing prevalence.”