The deal is particularly significant for Geron, which has spent large sums of money on its mission to develop drugs to combat cancer and other major illnesses.
Under the terms of the agreement, Geron will receive an upfront payment, milestone payments, and royalties. Merck has also agreed to acquire equity in Geron at a future date as part of Geron’s next round of financing.
In addition, Merck has acquired an exclusive option to negotiate a separate agreement for Geron’s dendritic cell-based telomerase vaccine currently in mid stage clinical trials at Duke University Medical Center.
“We at Merck are excited about what Geron has demonstrated with telomerase in cancer. Our objective is to combine our technologies with the hope of bringing a product to market that may have application across a large number of cancers,” said Dr Stephen Friend, executive vice president, Advanced Technology and Oncology at Merck Research Laboratories. “This is a project of high interest and commitment at Merck, and is indicative of Merck’s strategic direction in developing new anticancer therapies.”