By Fineline Cube 
Shanghai-based biotech Abbisko Therapeutics Co., Ltd (HKG: 2256) announced that its German partner Merck KGaA (ETR: MRK) has exercised the global commercialization option for pimicotinib (ABSK021). This move triggers an option exercise fee of USD 85.0 million, as per the agreement signed in December 2023.
Partnership Details
Merck secured an exclusive license to commercialize the CSF-1R inhibitor for all indications in mainland China, Hong Kong, Macau, and Taiwan. The 2023 licensing deal also granted Merck an exclusive option for global commercial rights. Abbisko received a one-time, non-refundable upfront payment of USD 70.0 million in February 2024 and is now set to receive an additional USD 85.0 million. Merck also holds the option to co-develop pimicotinib for additional indications under certain conditions.
Financial Milestones
In total, Abbisko is eligible to receive up to USD 605.5 million in payments, including upfront, development, and commercial milestones, along with double-digit percentage royalties on annual net sales.
Clinical Success
Pimicotinib, an oral CSF-1R inhibitor developed by Abbisko, demonstrated positive results in the global Phase III MANEUVER study for tenosynovial giant cell tumor (TGCT). The trial, concluded in November last year, showed an objective response rate (ORR) of 54.0% at week 25 compared to 3.2% for the placebo (P<0.0001). The drug was well-tolerated with low discontinuation rates due to treatment-related adverse events and no evidence of cholestatic hepatotoxicity.-Fineline Info & Tech