Merck KGaA amends Erbitux agreement

Merck KGaA has announced it has amended an agreement with ImClone Systems made in 1998 made for Erbitux, an anti-cancer monoclonal antibody drug, as well as other anti-epidermal growth factor receptor (EGFR) drugs.

The new agreement between the two companies concerns ImClone’s consent for Merck KGgA to sublicense the development and commercialisation of an anti-EGFR monoclonal antibody drug to Takeda.

The amendments also include reciprocal rights that include the sharing of confidential technical information, giving the companies freedom to engage in the development of Merck KGaA’s matuzumab, another anti-EGFR anticancer drug, outside the US.

Merck KGaA will pay ImClone 2.5 million euros (1.7 million pounds) on implementing the agreement, as well as a further five million euros when it receives ImClone’s written consent for the sublicensing of Erbitux to Takeda.

Furthermore, Merck KGaA will increase its royalty payments for Erbitux to 9.5 per cent of sales outside North America.

Elmar Schnee, Merck’s executive board member responsible for the pharmaceutical business, remarked: “These agreements will allow Merck and Takeda to move forward as quickly as possible with the development of their oncology pipeline products.”

“It is also a recognition of both parties’ achievements in the fight against cancer,” he added.

Earlier this month, Erbitux was approved by the Scottish Medical Consortium for the treatment of head and neck cancer.

Dr Elizabeth Junor, consultant clinical oncologist at the Western General Hospital in Edinburgh, was quoted by the Evening Times as saying: “Erbitux is an exciting development for oncologists and their patients and provides a welcome new treatment option in this challenging cancer type.”

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