Merck KGaA is regaining exclusive worldwide rights to develop, manufacture, and commercialize anti-programmed death ligand-1 (PD-L1) antibody Bavencio (avelumab) following the termination of its alliance agreement with Pfizer.

Effective June 30, 2023, Merck KGaA, through its affiliate Ares Trading S.A., will take full control of the global commercialization of Bavencio. The current profit share will be replaced by a 15% royalty to Pfizer on sales of Bavencio. Merck KGaA and Pfizer will continue to operationalize their respective ongoing clinical trials for Bavencio, and Merck KGaA will control all future R&D activities. As it is currently, product manufacturing and supply chain will remain solely with Merck KGaA, ensuring continuous and reliable access to Bavencio.

Bavencio was discovered in-house at Merck KGaA. The alliance with Pfizer was executed in 2014 to co-develop and co-commercialize Bavencio with the goal to accelerate development of the human PD-L1 antibody. With this announcement, Bavencio will further contribute to Merck KGaA’s Big 3 strategy focusing on new Healthcare products, Process Solutions and Life Science Services, as well as Semiconductor Solutions.

“On behalf of Merck KGaA, Darmstadt, Germany, I’d like to thank Pfizer for their partnership and collaboration over the last nine years, and for the role they have played in the success of Bavencio,” said Belén Garijo, chair of the executive board and CEO of Merck KGaA, Darmstadt, Germany. “Our joint efforts have delivered meaningful therapeutic value to patients around the world who are living with cancer. This has been an incredible journey for us, and thanks to Pfizer’s partnership we are now very well positioned to continue to deliver this therapy to patients in need.”

“Our alliance with Merck KGaA, Darmstadt, Germany allowed us to combine our complementary strengths to develop and launch Bavencio to help meet the needs of people with cancer globally,” said Albert Bourla, Pfizer Chairman and Chief Executive Officer. “We are proud of our achievements together, including introducing Bavencio as an important treatment option for patients with metastatic Merkel cell carcinoma, locally advanced or metastatic urothelial carcinoma, and in combination with Inlyta for advanced renal cell carcinoma. We thank our colleagues at Merck KGaA, Darmstadt, Germany, for a tremendous partnership and wish them well in their future plans for Bavencio.”