Benzinga | Jul 1, 2021 01:50PM EDT

NGM Biopharma, Merck Amend Development Pact To Focus On Retinal, Cardiovascular & Metabolic Targets

* NGM Biopharmaceuticals Inc (NASDAQ:NGM) has amended and restated an agreement with Merck & Co Inc (NYSE:MRK) to extend their ongoing collaboration through March 2024 with a narrower scope.

* The collaboration will focus primarily on developing treatments for retinal and cardiovascular & metabolic (CVM) diseases, including heart failure.

* The amended collaboration's primary focus on retinal and CVM diseases builds upon progress with NGM621 and MK-3655, both discovered by NGM under the partnership.

* Merck retains an option to license those programs being advanced under the amended collaboration.

* NGM gains worldwide rights to its disclosed oncology portfolio and all preclinical and current, and future research assets falling outside of the amended collaboration's narrower scope, subject to a low single-digit net sales royalty to Merck.

* Under the terms of the amended collaboration, Merck will provide approximately $120 million in R&D funding to NGM through March 2024, including $86 million for the period from April 2021 through March 2022, plus additional potential option payments if Merck exercises any license option.

* Price Action: NGM shares are up 5.93% at $20.89, and MRK stock is up 0.24% at $77.96 during the market session on the last check Thursday.