Sym004 is comprised of two antibodies designed to block ligand binding, receptor activation and downstream signaling and to draw out removal of the EGFR receptors from the cancer cell surface by inducing EGFR internalization and degradation.
Pursuant to the agreement, Merck, which gains exclusive worldwide rights to develop and commercialize Sym004, will make an upfront payment of €20m to Symphogen.
Symphogen is even entitled to receive up to €225m for clinical development and regulatory milestones, €250m in potential combined sales performance milestones and royalties on net worldwide sales.
Symphogen chief executive officer Kirsten Drejer said Merck is well positioned to develop Sym004 based on its deep knowledge of the EGFR area.
"This transaction further validates the antibody mixture approach as a highly attractive option," Drejer added.
The company is currently evaluating Sym004 in a Phase I/II trial in patients with advanced KRAS wild-type metastatic colorectal cancer (mCRC) who have previously progressed on treatment with standard chemotherapy and a marketed anti-EGFR monoclonal antibody.
Additionally, an open-label Phase II trial in patients with squamous cell carcinoma of the head and neck who have failed anti-EGFR-based therapy is ongoing.
Merck Serono global business development and strategy head Dr. Susan Jane Herbert said, "Sym004 further strengthens our early development pipeline by adding a product that is thought to act via a proposed synergistic mechanism of action not previously studied, but more specifically, it has the potential to become a key asset complementing our already highly successful Erbitux franchise."