According to the technology license and option agreement, Merck obtains a non-exclusive license to the patent for use in an undisclosed product in addition to future products.
In exchange, Xencor will earn an upfront payment and annual maintenance fees, while being eligible for milestone payments on successful development of Merck’s product candidates besides sales-based royalties.
Xencor chief executive officer Bassil Dahiyat said, "This technology offers our partners an opportunity to create truly best-in-class therapeutics which will be covered by our ever growing IP portfolio."