Oncothyreon to Receive $5 Million Payment From Merck KGaA

Oncothyreon has completed the transfer of certain assays and methodology related to Stimuvax, or BLP25 liposome vaccine, to Merck KGaA, Germany, triggering a payment to Oncothyreon of $5 million. The payment will be made under the terms of the amended and restated supply agreement signed in August 2007.

Stimuvax is an investigational therapeutic cancer vaccine designed to induce an immune response to cancer cells that express MUC1, a protein antigen widely expressed on common cancers. Merck KGaA currently is conducting a global Phase III trial of Stimuvax in patients with unresectable stage III non-small cell lung cancer (NSCLC).

Robert Kirkman, president and CEO of Oncothyreon, said: “We are pleased with the progress of our collaboration with Merck KGaA for Stimuvax. Stimuvax is an exciting product candidate with promising Phase II data supporting its development as a maintenance therapy after first-line therapy for patients with stage III NSCLC. There are currently no products approved for this indication, which therefore represents both significant unmet medical need and a potentially large market opportunity.”