Abbisko Says Merck Exercised Option For Global Rights Of Pimicotinib

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(RTTNews) - Abbisko Therapeutics Co., Ltd. announced that Merck has exercised the global commercialization option for pimicotinib (ABSK021), with an option exercise fee of US$85.0 million, under the licensing agreement signed in December 2023.

In December 2023, Abbisko Therapeutics entered into an exclusive licensing agreement with Merck regarding pimicotinib, a CSF-1R inhibitor. Under the terms of the Agreement, Merck initially had an exclusive license to commercialize pimicotinib for all indications in the Chinese mainland, Hong Kong, Macau and Taiwan with an exclusive option for global commercial rights of pimicotinib.

Merck now has exercised such option and has the exclusive license to commercialize pimicotinib worldwide. Abbisko Therapeutics has already received the one-time, non-refundable upfront payment of US$70.0 million in February 2024, and is now entitled to receive the additional option exercise fee of US$85.0 million.

Additionally, Merck has the option to co-develop pimicotinib for additional indications under certain conditions. In total, Abbisko Therapeutics is eligible to receive up to US$605.5 million in payments, including upfront, development, and commercial milestones, as well as double-digit percentage royalties on annual net sales.