Merck To Sell ImClone Cancer Therapy Outside North America

Merck KGaA has exclusively licensed the rights to develop and commercialize ImClone Systems, Inc.'s lead anti-cancer product, C225, outside of North America. Under the terms of the recently-announced license agreement, ImClone retains North American rights to the product and will continue to exclusively develop C225 in North America. The companies will co-develop the product in Japan.

The agreement includes $30 million in up-front fees and early cash-based milestones, $30 million in late stage equity-based milestones and a $30 million credit line for the build-out of a manufacturing facility by ImClone for the commercial production of C225.

Merck KGaA will fund clinical development outside of North America. ImClone will be the manufacturer of C225 and Merck KGaA will purchase product from ImClone for clinical trials and commercialization in its territory. Royalties will be paid to ImClone by Merck KGaA in connection with sales of C225 outside of North America.

Currently being tested in late stage clinical trials, C225 is a monoclonal antibody that inhibits activity of the epidermal growth factor receptor (EGFr) associated with cancer cell growth in a number of solid tumors.

For more information: Andrea F. Rabney, senior director of Corporate Development, ImClone Systems, Inc., 180 Varick Street, New York, NY 10014, USA. Telephone: 212-645-1405. Fax: 212-645-2054.