Merck has agreed a settlement and licensing agreement with Bristol-Myers Squibb (BMS) and Ono Pharmaceutical under which it will pay the companies $625 million.
The deal was announced on Friday, January 20, and settles patent infringement litigation related to Merck’s PD-1 antibody Keytruda (pembrolizumab).
Kenneth Frazier, CEO of Merck, said: “Today’s announcement eliminates uncertainty and enables us to continue to focus on Keytruda, our immuno-oncology medicine, which is already helping thousands of patients around the world and becoming a foundation for the treatment of cancer through our industry-leading clinical development programme.”
BMS and Ono had asserted in litigation that Merck’s sale of Keytruda infringed the companies’ patents relating to their PD-1 antibody Opdivo (nivolumab).
As part of the agreement, Merck will also pay ongoing royalties on global sales of Keytruda of 6.5% from January 1, 2017 to December 31, 2023. From 2024 to 2026, Merck will have to pay 2.5% in royalties.
Giovanni Caforio, CEO of BMS, said: “BMS and Ono’s agreement with Merck protects our scientific discoveries and validates the strong intellectual property rights we secured as the early innovators in the science of PD-1, a key mechanism in immuno-oncology that has proven to have a transformational impact in cancer care.”