As part of the deal, Merck will pay Xencor a $3 million upfront license fee, make an additional payment if it selects an Xtend variant, and pay clinical development milestones and royalties on product sales.
NKT licensed the IP from Beth Israel Deaconess Medical Center, Dana-Farber Cancer Institute, and Massachusetts General Hospital. As a result, each of the Harvard Med-affiliated institutes has been awarded an undisclosed equity stake in the company.
The decision, part of the state's 2010 budget, will allow life-sci shops in FY2011 to determine the percentage of corporate income taxes they owe the state based solely on sales, rather than combining sales with payroll and owned property.
Under terms of the deal, Novartis will give Epistem a $4 million upfront payment and provide funding to study the stem cell shop's drug targets. Epistem could also get up to $45 million in milestone payments for each product developed from targets licensed under the agreement.