Merus N.V. announced the closing of its global strategic research collaboration with Incyte Corporation focused on the research, discovery and development of bispecific antibodies utilizing Merus' proprietary Biclonics® technology platform. The agreement grants Incyte the exclusive rights for up to eleven bispecific antibody research programs, including two of Merus' current preclinical immuno-oncology discovery programs. Under the terms of the collaboration, Incyte has agreed to pay Merus an upfront payment of $120 million and purchase 3.2 million shares of Merus stock at $25 per share, for a total equity investment of $80 million. For one current preclinical program, Merus will retain all rights to develop and commercialize an approved product in the United States.

Merus also has the option to co-fund development of product candidates arising from two other programs. For the other eight programs, Merus is eligible to receive potential development, regulatory and sales milestone payments of up to $350 million per program, for an aggregate milestone opportunity of approximately $2.8 billion if all milestones are achieved across all eight programs in all territories, in addition to tiered royalties ranging from 6% to 10% on global sales.