Merck Serono and ZymoGenetics restructure partnership

Merck Serono, a division of Merck KGaA, and ZymoGenetics have announced a restructuring of their partnership over the development and commercialisation of atacicept.

Under the new arrangements, Merck now owns the exclusive worldwide development and marketing rights to to the compound, including those in North America.

ZymoGenetics has exercised its right under the original contract to convert to a worldwide royalty license and will therefore no longer be responsible for funding the development costs of the drug, which will taken over fully by Merck.

Merck will make milestone payments to ZymoGenetics as set out in the 2001 contract, while ZymoGenetics will also receive undisclosed royalty fees on worldwide net sales of the drug, should it come to market.

Vincent Aurentz, executive vice-president of portfolio management and business development at Merck Serono, said: “This restructuring of our partnership with ZymoGenetics emphasises the importance of atacicept and our commitment to the program.”

He added it also underlines the need to be flexible in the management of successful partnership agreements in order to maximise their potential.

In June 2008, Merk KGaA announced the initiation of a phase II/III clinical trial assessing atacicept in patients with chronic autoimmune disease systemic lupus erythematosus.