ImClone, Bristol-Myers Squibb Sign Agreement With Merck

ImClone and Bristol-Myers Squibb have signed an agreement with German pharma major Merck for the co-development and co-commercialization of Erbitux (cetuximab) in Japan.

Under the terms of the agreement, ImClone, Bristol-Myers Squibb and Merck will collaborate on a joint effort to develop and market Erbitux in Japan. The drug will be used for the treatment of epidermal growth factor receptor (EGFR)-expressing metastatic colorectal cancer (mCRC), as well as for the treatment of any other cancers the parties agree to pursue.

Bristol-Myers Squibb and Merck will utilize their respective sales forces in Japan, and the three companies will share profits/losses realized. Merck Serono Japan will distribute the product and record the sales for the collaboration.

Merck will receive 50% of the profit/loss from sales in Japan, and ImClone Systems and BMS will each receive 25%. In addition to percentage of profits, ImClone Systems will receive from Merck a royalty equal to 4.75% of total net sales in Japan.