Under the terms of the agreement, Bayer Schering Pharma will pay Micromet a E4.5 million fee to secure a one year option on a specific BiTE antibody. Bayer Schering Pharma may exercise this option prior to January 5, 2010 through the additional payment of an option exercise fee.
The exercise of the option would trigger a formal collaboration between Micromet and Bayer Schering Pharma on the development of the BiTE antibody through the completion of Phase I clinical trials, at which point Bayer Schering Pharma would assume full control of the further development and commercialization of the BiTE antibody.
Micromet would be eligible for an option exercise fee and milestone payments of up to E290 million in total and up to double digit royalties based on tiered net sales of the product. In addition, Micromet would be reimbursed for its R&D expenses incurred in connection with the development of the BiTE antibody in the collaboration with Bayer Schering Pharma.
Christian Itin, CEO of Micromet, said: We are very pleased with Bayer Schering Pharma’s interest in this preclinical BiTE antibody program and their financial commitment to secure exclusive access for the next 12 months. This deal represents further validation of our BiTE antibody technology by a major oncology company.