Flemish spin-out seals deal with Merck Serono

Collaboration agreed

Ablynx, a biopharmaceutical company spun out of the VIB and the Free University Brussels (VUB), Belgium, has made another deal with a major drug company, following agreements with Boehringer Ingelheim, Novartis, GSK, Wyeth and Procter & Gamble. The company announced today an agreement with Merck Serono to co-discover and co-develop its proprietary Nanobodies, a novel class of therapeutic antibodies, against two targets in oncology and immunology. The agreement includes an upfront cash payment to Ablynx of €10 million.

Nanobodies contain the unique structural and functional properties of naturally occurring single domain antibodies. The partners will collaborate to research and develop Nanobody-based therapeutics against two disease targets, exploiting some of the key benefits Nanobodies have over conventional antibodies and other fragments.

Under the terms of the agreement, both companies will equally share all research and development costs. Should Ablynx contribute equally to each programme, it will receive 50 per cent of the resulting profits. In addition, Ablynx will have an option to opt-out partly or fully during the research and development programmes, in which case the company would be eligible to receive either a reduced profit share, in the case of a partial opt-out, or milestones and royalties on potential sales, in the case of a full opt-out. Total development and commercial milestones, depending on the point of opt-out by Ablynx, could reach up to €325 million should a product be approved in multiple indications in all major markets.

“This collaboration reinforces our commitment to deliver innovative treatments in areas of high unmet medical needs,” said Bernhard Kirschbaum, Executive Vice President Research of Merck Serono. “We believe that Nanobodies have the potential to provide innovative drugs combining the best features of monoclonal antibodies and small molecules, and we look forward to working with Ablynx.”

“We are very pleased to enter into this partnership with Merck Serono, a recognized global leader in the treatment of oncology and immunology therapies. This type of risk and reward sharing collaboration underlines Ablynx’s maturing capabilities and collaboration strategy, whereby we can leverage on the resources and expertise of our partners to advance Nanobodies more quickly into the clinic while retaining an equal share of the value created,” said Edwin Moses, CEO and Chairman of Ablynx.