China-based Sichuan Kelun Pharmaceutical Co., Ltd (SHE: 002422) has announced receiving USD 30 million from US major Merck Sharp & Dohme (MSD), triggered by a licensing agreement reached on May 16, 2022. This payment is part of a broader collaboration between the two companies to develop and commercialize an innovative biologic drug candidate.
Deal Structure
Under the terms of the agreement, Kelun granted MSD development and commercial rights to an undisclosed biologic drug candidate from its pipeline outside of Greater China (mainland China, Hong Kong, Macau, and Taiwan). MSD will pay Kelun two upfront payments, milestone payments, and royalties on future sales. Kelun received USD 17 million when the license agreement came into effect and another USD 30 million after the amendment to the agreement was signed.
Future Milestone Payments
MSD has further committed to cumulative milestone payments worth up to USD 1.36 billion, highlighting the significant potential of the drug candidate and the confidence in the collaboration between the two companies.-Fineline Info & Tech
