Merrimack, Baxter deal

Merrimack granted Baxter exclusive rights outside of the U.S. and Taiwan to develop and commercialize MM-398. The nanoparticle liposome formulation of irinotecan has completed Phase III testing in metastatic pancreatic cancer patients who failed prior gemcitabine-based therapy. Merrimack expects to submit an NDA to FDA this year, and Baxter expects to submit regulatory applications outside of the U.S. beginning next year. The companies will share equally the cost of conducting all clinical trials under the global development plan, except that Merrimack will be responsible for the first $98.8 million of costs related to development for pancreatic cancer patients who have not previously received gemcitabine. Merrimack will receive $100 million up front and is eligible to receive up to $870 million in milestones, plus tiered, escalating royalties from sub-teen double-digit to low-twenties percentages.

Merrimack also granted Baxter a right of first negotiation to license ex-U.S. rights to develop and commercialize cancer compounds MM-111, MM-141 and MM-302. MM-111, a bispecific antibody targeting EGFR3 and EGFR2, is in Phase II testing; MM-141, a tetravalent bispecific antibody targeting insulin-like growth factor 1 ( IGF-1) receptor ( IGF1R; CD221) and EGFR3, is in Phase I testing; and MM-302, a pegylated liposomal doxorubicin formulation targeting HER2, is in Phase I testing. ...