Abbisko Therapeutics has entered into a licensing agreement granting Merck an exclusive license to commercialize products comprising or containing pimicotinib (ABSK021) for all indications in Chinese mainland, Hong Kong, Macau, and Taiwan, and Abbisko Therapeutics retains exclusive rights to develop pimicotinib within the licensed territory.

Abbisko Therapeutics has also granted Merck an exclusive option for global commercial rights of pimicotinib. Merck also has the option to co-develop pimicotinib in additional indications under certain conditions.

Abbisko will receive a one-time payment of $70 million. In the event that Merck exercises the global commercialization option, Merck will pay an additional option exercise fee. The aggregate amount of upfront payment, exercising payment, and development and commercialization milestones total $605.5 million, plus royalties on sales.

Xu Yao-chang, chairman of Abbisko Therapeutics, said, “The collaboration with Merck is an important milestone in advancing the global commercialization process of pimicotinib, and provides a new model for the commercialization path of the company’s pipeline in the future. We are pleased to collaborate with a leading multinational pharmaceutical company, jointly accelerating the global approval and commercialization pace of pimicotinib and striving to bring new treatment options to patients as soon as possible.”

“We have the opportunity through our partnership with Abbisko to deliver a first-in-class treatment for a critically underserved patient population in China and potentially beyond,” said Andrew Paterson, chief marketing officer for the healthcare business sector of Merck. “Pimicotinib provides an opportunity to address a significant unmet medical need and for us to expand our commercial footprint in oncology in China, the second largest pharmaceutical market in the world.”