Merck has entered into an agreement with Insmed, Inc. to purchase its portfolio of follow-on biologic therapeutic candidates and its commercial manufacturing facilities in Boulder, CO for $130 million in cash.
"Insmed's pipeline of follow-on biologic candidates presents the opportunity to expedite Merck's entry into the biologics marketplace as well as providing unique manufacturing Resources and an experienced team of protein experts," said Frank K. Clyburn senior vice president and general manager Merck BioVentures. "This agreement represents a strong strategic fit for Merck as we aggressively expand and advance our portfolio of developmental follow-on biologics."
The Boulder facilities comprise 50,000 sq. ft. of biologics process development analytical lab and manufacturing facilities. Insmed's follow-on biologics portfolio includes INS-19, an investigational recombinant granulocyte-colony stimulating factor (G-CSF) in Phase III trials for the prevention of infections in cancer patients receiving chemotherapy, and INS-20, a pegylated recombinant G-CSF designed to allow for less frequent dosing, that is currently in Phase I trials.
The agreement provides for initial payments of as much as $10 million for INS-19 and INS-20. Merck will pay Insmed the remaining balance when the transaction closes, without any further milestone or royalty obligations. Merck plans to offer positions to staff at the Boulder facilities.