Agensys and Merck Form Global Alliance for Cancer Biotechnology

Strategic Insights -

Agensys, a cancer biotechnology company, and Merck & Co., Inc. have partnered to jointly develop and commercialize AGS-PSCA, a fully human monoclonal antibody to Prostate Stem Cell Antigen (PSCA). The agreement grants Merck worldwide rights to AGS-PSCA and an exclusive license to PSCA, a proprietary Agensys target. Merck will lead the future worldwide clinical development program, with Agensys participating in phase III development and commercialization in the United States. The companies have initiated a phase I clinical trial of AGS-PSCA in patients with advanced prostate cancer at Memorial Sloan-Kettering Cancer Center and Johns Hopkins Kimmel Cancer Center.

Key Takeaways:

  • Agensys and Merck have formed a global alliance to develop and commercialize AGS-PSCA, a fully human monoclonal antibody to Prostate Stem Cell Antigen (PSCA).
  • Merck has acquired worldwide rights to AGS-PSCA and an exclusive license to PSCA, a proprietary Agensys target.
  • Under the terms of the agreement, Merck will make an initial cash payment of $17.5 million to Agensys, with further payments of $11.5 million over the following 12 months.
  • The successful development and launch of AGS-PSCA could trigger milestone payments of up to $95.0 million, increasing to more than $170 million if multiple oncology indications are successfully developed and approved.
  • Agensys will also receive royalties on worldwide sales of AGS-PSCA.
  • Agensys has initiated a phase I clinical trial of AGS-PSCA in patients with advanced prostate cancer at Memorial Sloan-Kettering Cancer Center and Johns Hopkins Kimmel Cancer Center.
  • Merck will lead the future worldwide clinical development program, with Agensys participating in phase III development and commercialization in the United States.
  • Donald B. Rice, chairman, president and CEO of Agensys, stated that AGS-PSCA has consistently demonstrated significant inhibition of tumor growth and metastases leading to increases in survival in preclinical studies of human prostate, pancreatic, and bladder cancers.
  • Stephen H. Friend, Executive VP, Advanced Technology and Oncology, Merck Research Laboratories, stated that Merck is excited to join with Agensys to develop AGS-PSCA for prostate and other cancers, which represent major unmet medical needs.

Statistics:

  • Merck will make an initial cash payment of $17.5 million to Agensys, with further payments of $11.5 million over the following 12 months.
  • The successful development and launch of AGS-PSCA could trigger milestone payments of up to $95.0 million, increasing to more than $170 million if multiple oncology indications are successfully developed and approved.
  • Agensys will receive royalties on worldwide sales of AGS-PSCA.

Sources:

  • Agensys, Inc. press release, no date.
  • Health & Medicine Week, "Agensys, Merck Form Global Alliance for Cancer Biotechnology," 2005.