NGM, Merck collaborate to develop biologic therapies for various diseases

This multi-year collaboration will come into effect, following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

Merck Research Laboratories president Roger M. Perlmutter said: "NGM has developed a uniquely powerful research program that has permitted identification of novel, and quite consequential, pathways for metabolic regulation.

"Through this new collaboration, we hope to apply Merck’s well-established translational capabilities to advance innovative biologics that address the needs of patients suffering from diabetes, metabolic dysregulation, and malignancy."

As per the agreed terms, NGM will lead the research and development of the existing preclinical candidates including NP201, which is being evaluated for the treatment of diabetes, obesity and nonalcoholic steatohepatitis.

It will have the autonomy to identify and pursue other discovery stage programs at its discretion.

Merck will license all resulting NGM programs following human proof of concept trials.

If this is done, Merck will handle the global product development and commercialization for the resulting products, if approved.

The agreement will also require Merck to pay around $94m to NGM and will purchase a 15% equity stake in NGM for $106m.

Merck will also provide close to $250m to fund all of NGM’s efforts under the initial five-year years of the collaboration, with plans to provide additional funding if certain conditions are met.