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4D Pharma inks research collaboration agreement with Merck & Co
8th Oct 2019 08:30
(Sharecast News) - 4D Pharma has entered into a research collaboration agreement with Merck & Co to discover and develop live biotherapeutics for vaccines.
Under the terms of the agreement, 4D's proprietary MicroRx platform will be paired with Merck's expertise in the development and commercialisation of novel vaccines in up to three undisclosed indications.
4D has the right to cause MSD, Merck's trading name, to purchase $5m ordinary shares in the group during the first year of the collaboration.
In addition to an upfront cash payment for each indication, the AIM-listed group will also be eligible to receive up to $347.5m in option exercise, development and regulatory milestone payments, plus tiered royalties on annual net sales.
MSD will be responsible for the development, manufacture and commercialisation following the exercise of any of its exclusive options.
Chief executive Duncan Peyton said: "This research collaboration agreement brings together 4D's innovation in the microbiome space and MSD's track record of developing cutting-edge vaccines.
"MSD and 4D have worked closely combining world leading science to develop a workplan to advance the understanding of this field, with the aim of generating a new class of vaccines in areas of high unmet need."
At 0945 BST, 4D shares were up 17.3% at 122p.
Under the terms of the agreement, 4D's proprietary MicroRx platform will be paired with Merck's expertise in the development and commercialisation of novel vaccines in up to three undisclosed indications.
4D has the right to cause MSD, Merck's trading name, to purchase $5m ordinary shares in the group during the first year of the collaboration.
In addition to an upfront cash payment for each indication, the AIM-listed group will also be eligible to receive up to $347.5m in option exercise, development and regulatory milestone payments, plus tiered royalties on annual net sales.
MSD will be responsible for the development, manufacture and commercialisation following the exercise of any of its exclusive options.
Chief executive Duncan Peyton said: "This research collaboration agreement brings together 4D's innovation in the microbiome space and MSD's track record of developing cutting-edge vaccines.
"MSD and 4D have worked closely combining world leading science to develop a workplan to advance the understanding of this field, with the aim of generating a new class of vaccines in areas of high unmet need."
At 0945 BST, 4D shares were up 17.3% at 122p.