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Mereo, Oncologie sign $4M upfront licensing deal for ovarian cancer drug

Mereo BioPharma Group PLC has signed a licensing agreement with Oncologie Inc. for the development of navicixizumab, which is under evaluation in early clinical trials for treating ovarian cancer.

Oncologie, a privately held biotechnology company based in Waltham, Mass., will receive a worldwide license to develop and commercialize navicixizumab through the deal. Mereo will receive an upfront payment of $4 million, plus an additional payment of $2 million based on a certain chemistry, manufacturing and controls milestone.

Additional payments of up to $300 million will be offered to Mereo based on clinical, regulatory and commercial milestones, plus royalties based on global sales.

U.K.-based Mereo acquired navicixizumab through the 2019 acquisition of OncoMed Pharmaceuticals Inc. The therapy was granted a fast-track designation by the U.S. Food and Drug Administration for a certain type of ovarian cancer in October 2019.