Merck, Kelun-Biotech Ink Licensing Pact For Seven Cancer Candidates - Merck & Co (NYSE:MRK)

Merck & Co Inc MRK and Kelun-Biotech (a holding subsidiary of Sichuan Kelun Pharmaceutical Co Ltd) have entered into an exclusive license and collaboration agreement to develop seven investigational preclinical antibody-drug conjugates (ADC) for cancer.
Under the agreement, Kelun-Biotech has granted Merck exclusive global licenses to research, develop, manufacture and commercialize multiple investigational preclinical ADC therapies and exclusive options to obtain additional licenses for ADC candidates.
Kelun-Biotech retains the right to research, develop, manufacture, and commercialize certain licensed and option ADCs for mainland China, Hong Kong, and Macau.
Kelun-Biotech will receive an upfront payment of $175 million from Merck.
Kelun-Biotech is also eligible to receive future development, regulatory, and sales milestone payments totaling up to $9.3 billion if Kelun-Biotech does not retain mainland China, Hong Kong, and Macau rights for the option ADCs.
Merck also intends to make an equity investment in Kelun-Biotech.
This announcement follows previously disclosed research collaboration and licensing agreements for two ADC candidates, including MK-2870 (also known as SKB-264), an investigational TROP2 targeting ADC currently being evaluated in late-stage clinical trials.
Price Action: MRK shares are down 0.32% at $110.75 on the last check Thursday.