Xencor Receives Milestone Payment From Merck - Quick Facts

(RTTNews) - Xencor, Inc. (XNCR) announced that the company has received a milestone payment from Merck triggered by the initiation of a Phase 1 trial for an undisclosed biologic drug candidate that uses Xencor's XmAb antibody engineering intellectual property.

Under the terms of the agreement signed in June 2013, Xencor granted Merck a non-exclusive license to certain Xencor patents for use in an undisclosed product, as well as an option to license the same intellectual property for future products. Xencor received an upfront payment and continues to receive annual maintenance fees. Xencor is eligible to receive milestone payments, as well as royalties on sales of any potential products that may result from the agreement.