Ablynx gains partner in $340M nanobody deal

Belgium's Ablynx is pocketing $14.5 million (€10 million) from Merck Serono as a down payment for their new collaboration to find new 'nanobodies' for oncology and immunology. The milestones are worth up to €325 million. But the CEO has been quick to boast to reporters that the tie-up--which includes a 50-50 profit sharing deal--could prove to be worth billions.

According to a spokesman, Ablynx will receive €340 million if it chooses to opt out of the agreement completely and the drug makes it to market. Should the drug make it to market, and Ablynx does not opt out at all, it will be entitled to 50 percent of all profits, "totalling in the billions." Should Ablynx even half opt out of the agreement and the drug makes it to market, it will still be entitled to more than €340 million in payments.

"This collaboration reinforces our commitment to deliver innovative treatments in areas of high unmet medical needs," said Dr. Bernhard Kirschbaum, EVP of Merck Serono. "We believe that nanobodies have the potential to provide innovative drugs combining the best features of monoclonal antibodies and small molecules, and we look forward to working with Ablynx."

Ablynx's technology has won a line-up of impressed pharma partners. The developer has struck deals with Wyeth, Boehringer Ingelheim and Novartis.

- check out the Ablynx release

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Ablynx inks $265M 'nanobody' development deal (Jan. 2007)