Zymeworks snags $11M, Merck milestone to fuel bi-specific antibody work

Vancouver-based Zymeworks today hit a pair of important goals today. The bi-specific antibody developer raised $11 million and collected a milestone from its marquee partnership with Merck ($MRK), adding the kind of cash and technology validation that should help the little company achieve some big dreams.

The Advanced Biotechnologies Venture Fund, a boutique fund that invests on behalf of high-net worth individuals and family offices, put up the cash, which included investments by both new and existing private shareholders. And while the CEO declined to detail the dollar amount that Merck paid to cover the milestone, he's happy to see the pact pay off--in several ways.    

"This was the first bet that Merck had placed on bi-specifics," Zymeworks CEO Ali Tehrani tells FierceBiotech. And for a small-molecule player like the multi-national Merck to choose a relatively unknown biotech for its first foray into the field, he adds, helped grab the industry's attention. Merck agreed to a platform deal with Zymeworks that promised up to $187 million. 

The CEO isn't eager to share a lot of details about the company's financial position. But he's happy where Zymeworks is at this stage of its development, with money in the bank to fund a new round of pipeline efforts.

"Our runway extends for the next few years," he says. "The monies that we've raised, and monies from this milestone puts us in position to take multiple programs forward," with an oncology treatment in the lead and an IND in the works for mid- to late-2014.

Bi-specific antibodies simply promise a one-two punch against a specific disease, doubling up the therapeutic impact that has been delivered by the first generation of blockbuster antibodies. It's a richly populated field, with dozens of players. But it's also still a nascent effort, leaving the biotech some room to establish its reputation. And seeing Merck push ahead on its deal gives the company boasting rights at a critical point.   

"We're not a CRO," says the CEO, who founded the company back in 2003 when he was just out of grad school. "We don't intend to keep signing Big Pharma deals. We want to show we're best in class and we are validated." 

- get the release on the $11 million
- here's the release on the milestone