ImClone, Merck KGaA Revise Erbitux Pact

ImClone Systems and Merck KGaA have revised their licensing agreement for cancer drug Erbitux. Under the terms of the new agreement, Merck will sublicense certain intellectual property rights from ImClone related to the development of antibodies targeting a protein known as epidermal growth factor to Takeda Pharmaceutical Co.

Merck will pay ImClone $3.2 million when the agreements are executed and an additional $6.3 million upon ImClone’s written consent to the sublicense. Also, Merck has increased its royalty for all sales of Erbitux outside the U.S. and Canada, effective July 1.