Merck Sharp and Dohme and NGM Biopharmaceuticals announce new partnership

Merck Sharp and Dohme has announced a new collaboration with NGM Biopharmaceuticals to research, discover, develop and commercialise novel biologic therapies across a range of therapeutic areas.

The work will include multiple drug candidates currently in preclinical development at NGM, including NP201, which is being evaluated for the treatment of diabetes, obesity and nonalcoholic steatohepatitis.

NGM will lead the research and development of the existing preclinical candidates and will have free rein to identify and pursue other discovery stage programmes, with Merck receiving an option to license and lead global product development and commercialisation for any resulting products.

Additionally, Merck will make an upfront payment of $94 million (60.86 million pounds) to NGM and will purchase a 15 percent equity stake in the company for $106 million. It will commit up to $250 million to fund all of NGM's efforts under the initial five-year term of the collaboration.

Dr Roger Perlmutter, president of Merck Research Laboratories, said: "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."