Merck acquires manufacturing rights to cancer drug from Oncothyreon

In conjunction with this transaction, EMD Serono Canada, an affiliate of Merck KGaA, has assumed control of Oncothyreon’s facility in Edmonton, Canada, which is primarily utilized for the manufacture and development of Stimuvax. Merck Serono now has responsibility for development of the commercial-scale manufacturing process. EMD Serono Canada intends to offer employment to the majority of Oncothyreon’s 52 employees in Edmonton.

While the previous agreements already included some limited manufacturing rights, the new agreement is expected to provide Merck Serono with the full rights. The transfer of Stimuvax manufacturing rights has required the license agreement between Merck Serono and Oncothyreon to be amended and restated.

While potential payments upon achievement of certain milestones under the previous agreements between Merck Serono and Oncothyreon remain unchanged, the royalty rates payable to Oncothyreon on future net sales are reduced.

Merck Serono already holds the clinical development and commercialization rights for Stimuvax under license from Oncothyreon. Stimuvax is a therapeutic vaccine in Phase III clinical development for non-small cell lung cancer (NSCLC) and is the first investigational vaccine in unresectable stage III NSCLC to enter Phase III clinical testing.

Hanns-Eberhard Erle, executive vice president of technical operations at Merck Serono, said: Merck Serono’s acquisition of manufacturing rights for Stimuvax reflects our confidence in its future role in the treatment of cancer and also our commitment to expanding our oncology portfolio so that we can continue to provide oncologists and patients with innovative treatment options.