FRANKFURT (Reuters) – Germany’s Merck KGaA on Monday said it struck a collaboration deal with Chinese drugmaker Jiangsu Hengrui Pharmaceuticals to widen Merck’s work in an area known as “DNA damage response” drugs.
In a statement on Monday, diversified group Merck said it agreed to pay Hengrui 160 million euros ($169 million) upfront. The deal could be worth up to 1.4 billion euros when including payments contingent on development and commercial achievement as well as royalties on sales.
Under the agreement, Merck wins the license outside of China to develop, manufacture and commercialize Hengrui’s drug candidate HRS-1167.
It belongs to the DNA damage response (DDR) inhibitor class, designed to block cancer cells’ ability to repair their genetic code when multiplying, an approach pursued by rivals such as AstraZeneca and GSK.
The deal also covers rights outside of China to Hengrui’s antibody-drug conjugate SHR-A1904, an experimental precision drug against cancer.
($1 = 0.9478 euros)
(Reporting by Ludwig Burger; Editing by Miranda Murray)
