Merck Assigns Chimeric Antigen Receptor T-cell (CAR-T) Rights to Intrexon

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DARMSTADT, Germany, Dec. 20, 2018 /PRNewswire=KYODO JBN/ --

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    - Agreement enables Merck to maintain an investment in the rapidly

advancing oncology field of CAR-T, while focusing its R&D efforts

    - Intrexon to issue Merck $150 million of Intrexon stock and a $25 million

convertible note; Intrexon to receive a $25 million cash investment

    Merck, a leading science and technology company, today announced that it

has evolved its agreement with Intrexon Corporation (NASDAQ: XON) for the

development of Chimeric Antigen Receptor T-cell (CAR-T) therapies, genetically

engineered T-cells with synthetic receptors that recognize a specific antigen

expressed on tumor cells. The agreement with Intrexon and its wholly-owned

subsidiary, Precigen, Inc., enables Merck to continue to implement its focused

R&D strategy, while maintaining an investment in the future potential of

next-generation CAR-T development.

    Under the terms of the agreement, Merck will assign its exclusive CAR-T

development rights to Intrexon. Merck will receive shares of Intrexon common

stock valued at $150 million in exchange for assigning Intrexon its CAR-T

rights.

    "Merck is excited to maintain its interest in the potential of CAR-T

technology, which may offer significant future benefits to patients fighting

cancer," said Belén Garijo, Member of the Executive Board and CEO Healthcare,

Merck. "The agreement is also illustrative of our efforts to enhance our focus

on accelerating the delivery of our innovative clinical pipeline to patients."

    Merck first entered into a collaboration and license agreement with

Intrexon in 2015 to develop and commercialize CAR-T cancer therapies utilizing

Intrexon's proprietary RheoSwitch Therapeutic System(R) and the Sleeping Beauty

non-viral gene integration technology. The combination of these platforms

enables regulation of gene expression and delivery with a non-viral approach

and preclinical data indicate the potential to improve therapeutic safety and

facilitate shortened manufacturing to improve time-to-treatment. As of December

31, 2017, these rights were considered intangible assets not yet available for

use with a carrying amount of EUR 104 million.

    "Merck's leading immuno-oncology research and commitment to developing

innovative medicines made them an ideal partner for us in advancing targeted

and controllable CAR-T therapies," said Helen Sabzevari, PhD, President of

Precigen. "We look forward to continued development of these promising

treatments with the goal of delivering more cost-effective, powerful and

precise therapies to patients in need."

    In addition to receiving $150 million of Intrexon common stock, this

agreement also includes a further $25 million investment in Intrexon. In

return, Merck will receive a $25 million convertible note, providing the option

to receive either Precigen or Intrexon stock. The closing of the transactions

contemplated by the agreement is subject to customary closing conditions,

including the expiration of the waiting period under the Hart-Scott-Rodino

Antitrust Improvements Act.

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Source: Merck