After Disappointing Phase 2 Data, Merck Drops Eye Disease Related Pact With NGM Biopharm

Merck & Co Inc MRK has notified NGM Biopharmaceuticals Inc NGM that it will not exercise its option to license NGM621 and its related compounds.
Merck will also not exercise the related ophthalmology bundle option.
NGM estimated in its latest quarterly report that it could also have received $20.7 million in reimbursable expenses if Merck went ahead with NGM621.
In June 2021, NGM Biopharma and Merck extended their ongoing collaboration through March 2024 with a narrower scope.
The amended collaboration's primary focus was retinal and, cardiovascular & metabolic diseases, built upon progress with NGM621 and MK-3655, both discovered by NGM under the partnership.
In October, Phase 2 trial data of NGM621 exhibited geographic atrophy (GA) lesion area reduction of 6.3% and 6.5%, respectively, compared to sham (n=106), which did not reach statistical significance in either arm.
Cardiovascular & metabolic-related research is slated to go on until March 2024.
Price Action: NGM shares are down 0.59% at $5.04 on the last check Wednesday.