Merck licenses NASH, diabetes compound from NGM

Merck & Co. Inc. (NYSE:MRK) exercised an option to license exclusive, worldwide rights to MK-3655 (formerly NGM313) from NGM Biopharmaceuticals Inc. (South San Francisco, Calif.). MK-3655, a mAb agonist of the klotho β (KLB)/fibroblast growth factor receptor 1c isoform (FGFR1c) complex, is in clinical testing for non-alcoholic steatohepatitis (NASH) and Type II diabetes.

NGM received a $20 million option exercise payment and retains an option to participate in up to 50% of a global cost and revenue sharing arrangement for MK-3655. If it does not exercise its option, NGM would be eligible for milestones and royalties...