Agensys and Merck Announce Agreement to Co-Develop and Commercialize a Novel Antibody for Cancer Therapy
Monday October 17, 9:00 am ET
SANTA MONICA, Calif. & WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--Oct. 17, 2005--Agensys, Inc., a cancer biotechnology company, and Merck & Co., Inc. today announced that they have formed a global alliance to jointly develop and commercialize AGS-PSCA, Agensys' fully human monoclonal antibody (MAb) 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, as well as rights to other therapeutic and diagnostic products developed under the alliance. Under the terms of the agreement, Merck will make an initial cash payment to Agensys of $17.5 million and, subject to the achievement of certain events, further payments of $11.5 million over the following 12 months. The successful development and launch of AGS-PSCA would trigger milestone payments of $95.0 million that could increase to more than $170 million if multiple oncology indications are successfully developed and approved. Agensys would also receive royalties on worldwide sales. Further financial terms were not disclosed.
"AGS-PSCA is the first antibody product from our pipeline and developing this novel and potentially important cancer therapy with Merck fulfills one of our major strategic goals," said Dr. Donald B. Rice, Chairman, President and CEO of Agensys. "In preclinical studies of human prostate, pancreatic and bladder cancers, AGS-PSCA has consistently demonstrated significant inhibition of tumor growth and metastases leading to increases in survival.
"Merck's outstanding research and clinical development capabilities, dedication to oncology, and commitment to partnering made them a persuasive choice of co-development partner for Agensys," Dr. Rice added.
Merck and Agensys will co-develop and jointly fund AGS-PSCA for prostate cancer and other indications through Phase II. 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. Agensys manufactured the clinical trial supplies used in this study and will continue to manufacture AGS-PSCA until production can be transferred to Merck. Merck will lead the future worldwide clinical development program with significant participation by Agensys. Merck has primary responsibility for both commercialization and commercial manufacture. Agensys has an option to participate in Phase III development and commercialization in the United States.
"We are excited about joining with Agensys to develop AGS-PSCA for prostate and other cancers, which represent major unmet medical needs that we are hoping to address through Merck's oncology franchise," said Dr. Stephen H. Friend, Executive Vice President, Advanced Technology and Oncology, Merck Research Laboratories. "Agensys' innovative approaches have provided an excellent opportunity to evaluate this important mechanism, and we look forward to a productive alliance."
About AGS-PSCA
AGS-PSCA is a high affinity, fully human IgG1k MAb directed to PSCA, generated using XenoMouse® technology. PSCA is expressed at significant levels on tumor cells from a majority of patients with all stages of prostate, pancreatic and bladder cancers. Efficacy studies utilizing human specimens of these tumors in xenograft mouse models have consistently demonstrated that AGS-PSCA significantly inhibits both tumor growth and metastases. Pre-clinical animal toxicology and pharmacokinetic studies have indicated that all administered doses of AGS-PSCA were well tolerated and demonstrated a long serum half-life. |
