8th Oct 2019 09:14
(Alliance News) - 4d Pharma PLC said Tuesday it has entered into a research collaboration and option licence agreement with Merck & Co Inc to develop vaccines for gut bacteria.
4d develops "live biotherapeutics" to treat the bacteria found in the human intestine - or gut microbiomes. The development of treatments for gut microbiome, 4d said, leads to treatments for cancer, gastrointestinal disease, respiratory disease and central nervous system disease.
Shares in 4d were 17% higher in London in morning trade at 124.00 pence each. Merck closed 0.7% lower in New York on Monday at USD84.39. The shares slipped a further 0.2% in after-hours trading to USD84.22.
4d said it could receive up to USD347.5 million as part of the deal, if certain option exercises and regulatory milestone payments are met. The deal will also include tiered royalties from the sales of any products created from the collaboration.
MSD will be responsible for development, manufacturing and commercialisation following the exercise of any of its exclusive options.
Under the deal, 4d's MicroRx platform will be used by MSD in three undisclosed indications, to discover if the drug can be commercialised.
"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," said 4d Chief Executive Duncan Peyton.
4d has the right to cause MSD to buy USD5 million in 4d shares in the first 12 months of the collaboration.
By Paul McGowan; [email protected]
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