ARTICLE | Company News

Hermes, PharmaEngine deal

November 10, 2014 8:00 AM UTC

Merrimack and PharmaEngine amended a 2011 deal under which PharmaEngine granted Merrimack exclusive, worldwide rights to cancer candidate MM-398 outside of Taiwan, where PharmaEngine retains rights. Under the amendment, Merrimack will pay PharmaEngine a $7 million milestone payment triggered by a September deal under which Merrimack granted Baxter International Inc. (NYSE:BAX, Deerfield, Ill.) exclusive rights outside of the U.S. and Taiwan to develop and commercialize MM-398. PharmaEngine is now eligible to receive a $5 million milestone payment from Merrimack upon FDA accepting an NDA for MM-398 prior to April 2, 2015. Previously, PharmaEngine was eligible for the payment based on FDA granting specified regulatory designations for MM-398.

The amendment also accelerates the reduction in the percentage of sublicense revenue to be received by PharmaEngine for regulatory and approval milestones, resulting in maximum sublicense revenue of $39.5 million. PharmaEngine is excluded from receiving sublicense revenue related to Merrimack's $100 million upfront payment and up to $150 million in development milestones from Baxter. The remaining $200 million of regulatory and sales milestones, as well as tiered royalties remain the same. PharmaEngine is eligible to receive up to $251.5 million under the deal (see BioCentury, May 26, 2011 & Sept. 29, 2014). ...