Merck KGaA and Biomira Enter Agreement

Merck KGaA and Biomira Inc. entered into a collaboration and supply agreement on May 3, 2001, with respect to the global product development and co-promotion of Biomira’s two most advanced therapeutic vaccines—THERATOPE and BLP25. Under the terms of the agreements, Merck KGaA and Biomira will jointly market products in the United States, while Merck will market the products in the rest of the world (with certain exceptions for countries in which Biomira already had distribution agreements in place). Biomira retains marketing rights in Canada. The total value of the transaction to Biomira is more than US$150 million in upfront licence and milestone payments and equity investments. The parties will share development costs in North America, and Merck KGaA will be responsible for clinical studies and marketing costs outside North America. Biomira will manufacture the vaccines for worldwide use and will be entitled to an equal share on product sales in the United States and Canada, and royalties on sales in other jurisdictions.

Michael Obert and Colleen Cebuliak of the Edmonton office of Fraser Milner Casgrain LLP represented Biomira. Counsel for Merck KGaA included Gilda Thomas, General Counsel for EMD Pharmaceuticals and Jens Echardt of Merck KGaA.