Oncothyreon, an American maker of cancer vaccines is selling its experimental manufacturing rights of Stimuvax to Germany’s Merck for $14 million.
Merck already owns the commercialization and development rights to the lung cancer drug. And now as part of new deal, Merck will take over Oncothyreon's manufacturing plant in Alberta, Canada. Oncothyreon is in the midst of a restructuring and has decided to sell its lung cancer division.
"We believe that an intense focus on these exciting product candidates is the best means to create value with our available resources," said Robert L. Kirkman, President and Chief Executive Officer of Oncothyreon. "We currently expect to complete the phase 1 trials for each of these products and, if the data are supportive, to move each of them into phase II trials in 2009. We believe the approximately $13 million we received from the sale of manufacturing rights for Stimuvax and certain assets to Merck, together with existing cash, will be sufficient to fund these objectives."