09:29 AM EDT, 07/01/2024 (MT Newswires) -- Merck ( MRK ) and Orion said Monday that they have mutually exercised an option to convert their ongoing co-development and co-commercialization agreement for opevesostat into an exclusive global license for Merck ( MRK ), granting Merck ( MRK ) sole rights to develop and commercialize the drug and other CYP11A1-targeting candidates.

As part of the agreement, Orion is eligible to receive substantial milestone payments, including up to $30 million in development milestones, up to $625 million in regulatory milestones, and up to $975 million in sales-based milestones, according to the joint statement. Additionally, Orion will receive annual tiered royalty payments on net sales, ranging from a low double-digit rate to the low twenties.

Merck ( MRK ) will be responsible for all past and future development and commercialization expenses related to the licensed products, the companies said. Orion said it will release 60 million euros reserved for development costs. Orion retains responsibility for manufacturing clinical and commercial supply for Merck ( MRK ).

The agreement is expected to become effective in Q3, subject to certain regulatory approvals and customary conditions, according to the joint statement.

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