US-based Baxter International has entered into an exclusive license and collaboration agreement with Merrimack Pharmaceuticals to develop and commercialise MM-398 (nanoliposomal irinotecan injection).
Also known as nal-IRI, MM-398 is a nanoliposomal encapsulation of the chemotherapeutic irinotecan.
In the US, Merrimack is developing a new drug application for MM-398 to treat patients with metastatic pancreatic cancer previously treated with a gemcitabine-based therapy.
The deal allows Baxter to gain exclusive commercialisation rights for all potential indications of MM-398 outside the US, while Merrimack holds commercialisation rights in the US, and the rights in Taiwan are held separately.
Baxter BioScience president Ludwig Hantson said: "Oncology represents an exciting new area and growth driver for our biopharmaceutical business.
"With this new collaboration with Merrimack on MM-398, a promising new anti-cancer agent, we continue to augment our growing pipeline focused on challenging diseases with significant unmet needs, while capitalising on our broad global reach."
As part of the deal, Merrimack will receive a $100m upfront payment from Baxter, and is also eligible to receive $120m in regulatory milestone payments related to the first pancreatic cancer indication, after milestones are achieved.
Merrimack will also receive $280m in development and regulatory milestone payments for a second pancreatic cancer indication.
In addition, it is eligible to receive $220m in future development and regulatory milestone payments related to two additional indications.
Baxter noted that Merrimack will receive $250m in sales milestone payments, as well as tiered royalties on net sales of MM-398 in the licensed geographies.
MM-398 has obtained orphan drug designation from US Food and Drug Administration and European Medicines Agency to treat patients with metastatic pancreatic cancer.
