Merck KGaA, Darmstadt, Germany, through its wholly owned subsidiary, Ares Trading, amended its agreement with Intrexon Corp. for the development of Chimeric Antigen Receptor T-cell (CAR-T) therapies. The agreement with Intrexon and its wholly-owned subsidiary, Precigen, Inc., enables Merck KGaA to continue to implement its R&D strategy, while maintaining an investment in the future potential of next-gen CAR-T development.

Merck KGaA will assign its exclusive CAR-T development rights to Intrexonin in exchange for shares of Intrexon common stock valued at $150 million. The agreement also includes a further $25 million investment in Intrexon. In return, Merck KGaA will receive a $25 million convertible note, providing the option to receive either Precigen or Intrexon stock. The closing of the transaction is subject to customary closing conditions.

“Merck KgaA, Darmstadt, Germany, is excited to maintain its interest in the potential of CAR-T technology, which may offer significant future benefits to patients fighting cancer,” said Belén Garijo, member of the executive board and chief executive officer of Healthcare, Merck KGaA, Darmstadt, Germany. “The agreement is also illustrative of our efforts to enhance our focus on accelerating the delivery of our innovative clinical pipeline to patients.” 

The initial collaboration and license agreement was signed in 2015 to develop and commercialize CAR-T cancer therapies utilizing Intrexon’s RheoSwitch Therapeutic System and the Sleeping Beauty non-viral gene integration technology. The combination of these platforms enables regulation of gene expression and delivery with a non-viral approach and preclinical data indicate the potential to improve therapeutic safety and facilitate shortened manufacturing to improve time-to-treatment.

“Merck KGaA, Darmstadt, Germany’s leading immuno-oncology research and commitment to developing innovative medicines made them an ideal partner for us in advancing targeted and controllable CAR-T therapies,” said Helen Sabzevari, PhD, President of Precigen. “We look forward to continued development of these promising treatments with the goal of delivering more cost-effective, powerful and precise therapies to patients in need.”