Collaborations play a critical role in executing our strategy to become a fully integrated oncology therapeutics company. We have collaborations with leading pharmaceutical and biotechnology companies as well as academic institutions, and continuously explore strategic relationships that extend the reach and capabilities of our technology platform and product candidates in oncology and other disease areas.
In December 2016, Merus and Incyte entered into a global, strategic collaboration focused on the research, discovery and development of bispecific antibodies utilizing Merus proprietary Biclonics® technology platform. As part of the agreement, Incyte received exclusive rights for up to eleven bispecific or monospecific antibody research programs.
In January 2021, Merus and Eli Lilly and Company (Lilly) entered into a research collaboration and exclusive license agreement that will leverage Merus proprietary Biclonics® platform to research and develop up to three CD3-engaging T-cell re-directing bispecific antibody therapies.
As part of the agreement, Merus will lead discovery and early-stage research activities, funded by Lilly. Lilly will be responsible for additional research, development and commercialization activities. In addition to receiving an upfront payment and equity investment, Merus will be eligible to receive potential development and commercialization milestones, in addition to tiered royalty payments on product sales should Lilly successfully commercialize a therapy from the collaboration.
In March 2024, Merus and Gilead entered into a collaboration, option and license agreement (Collaboration Agreement) to collaborate on the use of Merus’ proprietary Triclonics® platform to develop T-cell engaging multi-specific antibody products in oncology. Gilead paid an upfront, non-refundable payment of $56 million and $25 million equity investment. The collaboration includes at least two, but may include up to three preclinical research programs. If Gilead exercises its license option for all Programs, we will receive up to a total of approximately $1.5 billion across all three programs and potential royalties, if any product for such program is approved. We also have an option to forego unachieved development milestones and royalties to enter into a 50/50 split of net profits and net losses arrangement for the third program.
In January 2019, Merus entered into a strategic collaboration with Betta Pharmaceuticals to develop and commercialize Merus Biclonics® MCLA-129 in China. Under the terms of the agreement, Betta Pharmaceuticals is responsible for clinical development and potential commercialization of MCLA-129 in China, while Merus retains full ex-China rights.
In April 2014, Merus and Ono entered into a research and license agreement to jointly develop bispecific antibody therapies for undisclosed targets. Ono received worldwide exclusive rights to develop, manufacture, and commercialize the resulting products developed through the collaboration. Merus received an upfront payment, and is eligible to receive milestones and sales royalties. In March 2018, Ono exercised its option under the April 2014 agreement to enter into a new research and license agreement utilizing Merus proprietary Biclonics® technology platform to generate a bispecific antibody that binds to a combination of targets.