Merus Closes Global Research Collaboration with Incyte

Merus N.V. said pre-market Tuesday it has closed a global strategic research collaboration with Incyte Corp. (INCY) that will focus on the discovery and development of bispecific antibodies using Merus’ own Biclonics technology platform.

Under the terms of the collaboration, Merus will receive an upfront payment of $120 million from Incyte and Incyte will also acquire 3.2 million MRUS shares at $25 each for a total equity investment of $80 million.

Incyte will hold exclusive rights for up to 11 bispecific antibody research programs, including two of Merus’ current pre-clinical immuno-oncology discovery programs.

For eight research programs, Merus said it is eligible to receive potential milestone payments of up to $350 million per program for an aggregate of $2.8 billion if all milestones are achieved in addition to tiered royalties of 6% to 10% on global sales.

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