Mersana signs deal with Merck KGaA for cancer therapy development By Reuters

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Mersana signs deal with Merck KGaA for cancer therapy development

Published Dec 22, 2022 04:17PM ET

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Mersana signs deal with Merck KGaA for cancer therapy development

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(Reuters) - Mersana Therapeutics (NASDAQ:MRSN) Inc said on Thursday it had signed a deal for developing cancer drugs with Germany's Merck KGaA that has the potential to generate up to $800 million in milestone payments.

Mersana would receive $30 million in an upfront payment, which would be used to develop drugs known as antibody-drug conjugates (ADCs), the company said.

ADCs combine a tumor-seeking monoclonal antibody with a cell-killing chemotherapy payload, designed for a targeted destructive effect that, unlike conventional chemotherapy, spares healthy cells.

Under the agreement, Mersana would develop cancer drug candidates against up to two targets that would utilize its platform to combine Merck KGaA's proprietary antibodies.

Mersana said it was also eligible to receive royalties of up to low double-digit percentages on global net sales for any approved ADCs that are developed under the agreement.

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