Terms of the deal, which can be extended for an additional three years, call for the drug maker to use the technology for drug-discovery programs at the firm's Palo Alto, Calif., research site. The contract also provides Schering-Plough with the option to develop HuCAL-derived therapeutic antibodies against up to 10 disease-related targets.
In return, MorphoSys will receive an upfront payment, annual user fees, and optional R&D funding.
For therapeutic antibody projects undertaken by Schering-Plough, MorphoSys is eligible to receive license and milestone payments related to the successful advancement of projects in clinical development, and royalties on HuCAL antibodies developed under the agreement.
Further financial details were not disclosed.