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KalVista Pharmaceuticals boosted by Merck tie-up

Last updated: 23:13 10 Oct 2017 AEDT, First published: 18:13 10 Oct 2017 AEDT

deal agreed, handshake
Merck is investing US$9.1mln in KalVista

Small-cap drug developer KalVista Pharmaceuticals Inc (NASDAQ:KALV) has been boosted by a deal with Merck which may see the big-pharma group take just under 10% of the company.

The companies will collaborate on an investigational intravitreal (IVT) injection candidate currently in development for the potential treatment of diabetic macular edema (DME) and potential oral DME compounds.

Merck is investing US$9.1mln into KalVista and future milestone payments could deliver US$37mln.

KalVista would also be due future sales royalties should the collaboration advance drugs to market.

Merck has resources to help advance drug

“We are pleased to collaborate with Merck for the continuing development of KVD001 and future oral programs for patients with DME,” said KalVista chief executive Andrew Crockett in a statement.

He added: “We have always believed that development and commercialization of our DME therapies would require the resources of a large pharmaceutical company, and we believe Merck has the wherewithal and resources to help us advance development of our DME drug candidates.

“Importantly for KalVista, this collaboration also meets our strategic objectives of maintaining control of our oral HAE portfolio that we plan to develop independently.

“We look forward to providing more details about the Phase 2 trial for KVD001 in DME patients as the trial commences.”

Made progress in advancing KVDoo1

Ben Thorner, SVP of business development for Merck Research Laboratories, meanwhile, added: “The KalVista team has already made important progress in advancing this candidate into the clinic.

“At Merck, we look forward to the opportunity to apply our expertise and resources upon the achievement of proof of concept for KVD001.”

“Merck is seeking to collaborate on the development of candidates that we believe have the potential to transform practice in areas where there is a clear need for new and improved therapeutic options.”

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