Merck settles PD-1 dispute with BMS, Ono

Merck & Co. Inc. (NYSE:MRK) entered a settlement and license agreement with Bristol-Myers Squibb Co. (NYSE:BMY) and partner Ono Pharmaceutical Co. Ltd. (Tokyo:4528) that will end all litigation pertaining to Keytruda pembrolizumab in the U.S., Europe, Australia and Japan. BMS and Ono will receive an initial $625 million payment from Merck, and will receive royalties on Keytruda sales.

Merck markets Keytruda to treat non-small cell lung cancer (NSCLC), melanoma and squamous cell carcinoma of the head and neck (SCCHN). BMS and Ono share rights to Opdivo nivolumab, which is approved to treat NSCLC, melanoma, classical Hodgkin's lymphoma, head and neck cancer, and kidney cancer. Both mAbs target PD-1...