Yumanity Therapeutics, a US based drug discovery company targeting neurological disorders, has entered into a strategic research and collaboration with Merck (MSD) to develop new two novel pipeline drugs for neurodegenerative diseases.
Under the terms of agreement, Merck will gain exclusive rights to two preclinical assets indicated towards treating Amyotrophic Lateral Sclerosis (ALS) and Frontotemporal Lobar Dementia (FTLD). Yumanity will receive upfront payment and milestone payments totaling to USD 500 million as well as royalties on net sales of the products. Both partners will work together to advance the pre-clinical research program and Merck will have the rights to proceed with clinical development and commercialization of both the products.
Merck will also join Yumanity’s investors including Fidelity Management & Research Company, Redmile Group and Pfizer Ventures to participate in a Series C round of financing.