Merck KGaA & MorphoSys Sign Deal, Immuno-Oncology In Focus - Analyst Blog

Merck KGaA (MKGAF) and MorphoSys AG announced that they have inked a deal to discover and develop therapeutic antibodies against undisclosed immune checkpoints. MorphoSys will work with Merck KGaA's biopharmaceutical division, Merck Serono, to develop therapies that modulate the natural capability of the immune system to fight tumors.

Terms of the Deal

According to the agreement, MorphoSys' proprietary Ylanthia antibody phage library and technology platform will help in the identification of the targeted antibodies. Meanwhile, Merck Serono's expertise in the field of immuno-oncology will come in handy for development from phase I onwards. Merck Serono will be solely responsible for commercializing any products resulting from this agreement.

As per the deal, the cost of research & development will be shared by MorphoSys and Merck KGaA. However, MorphoSys holds the right to-opt out at predefined stages. MorphoSys will receive milestone payments on the achievement of certain development and commercial goals. Additionally, it will receive tiered royalties on sales of products depending on the extent of its co-funding.

Our Take

With this deal, Merck KGaA's cancer immunotherapy portfolio, which consists of both early-stage and late-stage candidates, will be strengthened further.

Of late, immuno-oncology has attracted the interest of several companies. Many companies have immuno-oncology candidates in their pipeline and are tying up with other companies as well. Last month, AstraZeneca plc AZN tied up with Incyte Corporation INCY for the development of its investigational immunotherapy, MEDI4736, in combination with Incyte's INCB24360 for the treatment of cancer.

Merck KGaA carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is ANIP Pharmaceuticals Inc. ANIP carrying a Zacks Rank #1 (Strong Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ASTRAZENECA PLC AZN: Free Stock Analysis Report
 
MERCK KGAA (MKGAF): Get Free Report
 
INCYTE CORP INCY: Free Stock Analysis Report
 
ANI PHARMACEUT ANIP: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAnalyst Ratings
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!