Biomira inks major collaborative deal with Merck

Edmonton-based Biomira Inc has entered into a collaborative agreement with pharmaceutical giant Merck KGAA worth US$150 million in license, milestone payments and equity investments. The agreement is focused on Biomira’s two most advanced cancer drug candidates — Theratope and BLP25 — and involves further development and promotion. Biomira retains marketing rights in Canada and will jointly market with Merck in the US through the latter’s affiliate, EMD Pharmaceuticals. Merck gets marketing rights for the rest of the world with minor exceptions. In addition to up-front cash payments and an equity investment, Merck will cover the cost of regulatory submissions for first and second cancer indication, as well as sales milestones. The two firms will share development costs, while Merck pays for clinical studies and marketing outside North America. Biomira’s two cancer vaccines are synthetic mimics and are designed to restore the body’s immune function to recognize foreign antigens and attack cancer cells....