Merck KGaA acquires manufacturing rights for Stimuvax from Oncothyreon

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[{"type":"text","content":"\n\n\n\nSEATTLE, Dec. 18 /CNW/ - Oncothyreon Inc. (Nasdaq: ONTY) (TSX:ONY)\nannounced today that Merck KGaA of Darmstadt, Germany has licensed the right\nto manufacture Stimuvax(R) and, through its affiliate EMD Serono Canada Inc.,\npurchased current inventory and certain assets utilized for the manufacture of\nStimuvax from Oncothyreon for consideration which includes net payments to\nOncothyreon totaling approximately US $13 million. Merck KGaA currently holds\nthe clinical development and commercialization rights for Stimuvax under\nlicense from Oncothyreon. Stimuvax is a therapeutic vaccine in Phase 3\nclinical development for non-small cell lung cancer.\n\n\nIn conjunction with this transaction Merck KGaA, through its affiliate\nEMD Serono Canada Inc., has assumed control of Oncothyreon's Edmonton, Canada,\nfacility, which is primarily utilized for the manufacture and development of\nStimuvax. EMD Serono Canada intends to offer employment to the majority of\nOncothyreon's 52 employees in Edmonton. In addition, Merck KGaA will be\nresponsible for all further development costs related to Stimuvax, including\ncommercial-scale manufacturing process development, and for the cost of goods\nat commercialization. The royalty rates payable to Oncothyreon on future net\nsales of Stimuvax, if any, have been adjusted to reflect that Oncothyreon is\nno longer responsible for these costs. Potential payments upon achievement of\ncertain milestones under the previous agreements between Merck KGaA and\nOncothyreon remain unchanged. The previously existing collaboration and supply\nagreements have been replaced by an amended and restated license agreement.\n\n\n"We believe that the license of manufacturing rights for Stimuvax to\nMerck KGaA is in the best interest of both Oncothyreon and the development of\nthis product," said Robert L. Kirkman, M.D., President and Chief Executive\nOfficer of Oncothyreon. "Merck KGaA will be able to bring its resources and\nmanufacturing expertise to the development of a commercial manufacturing\nprocess for Stimuvax, which has become a key component of its oncology\npipeline. At Oncothyreon we will be able focus our resources on our\nproprietary pipeline of targeted small molecules in oncology, while retaining\nour substantial economic upside if Stimuvax is commercialized."\n\n\n"We...

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