Merus N.V. (NASDAQ:MRUS) and Partner Therapeutics Inc, a private biotechnology company focused on hematology and oncology, entered into an agreement in which Merus has exclusively licensed to Partner Therapeutics the right to commercialize zenocutuzumab (Zeno) for NRG1 fusion-positive (NRG1+) cancer in the U.S.

Under the terms of the agreement, following a specified transition period, Partner Therapeutics will assume full rights to U.S. commercialization of Zeno for the treatment of NRG1+ cancer.

In exchange for the rights granted under the license agreement, Merus will receive an upfront payment and is eligible to receive milestones and high single-digit to low double-digit royalty payments based on Zeno’s annual net sales in NRG1+ cancer in the U.S. for any potential future sales.

The FDA is currently reviewing a biologics license application for Zeno for patients with previously treated NRG1+ non-small cell lung and pancreatic cancer.

Last month, the FDA extended the Prescription Drug User Fee Act (PDUFA) goal date for the zenocutuzumab Biologics License Application, which is currently under priority review.

The FDA has extended the PDUFA goal date to February 4, 2025, to enable sufficient time to review information recently submitted by the Company in response to a CMC information request. No additional clinical data have been requested.

William Blair is positive on Zeno but writes that Merus’s core thesis and primary value driver continue to be centered on petosemtamab.

On Sunday, Merus announced the publication of an abstract regarding petosemtamab in previously treated patients with recurrent/metastatic head and neck squamous cell carcinoma on the European Society for Medical Oncology Asia Congress website.

The abstract presents updated clinical data on petosemtamab from the initial expansion cohort (1500 mg) and a new dose-comparison cohort (1100 mg vs. 1500 mg).

The analyst writes that in the near term, updated data for petosemtamab monotherapy will be a key catalyst for Merus shares.

“We believe the company's Multiclonics platform produces molecules with attractive drug-like properties, providing continued pipeline expansion and additional business development opportunities..., with potential to be a market leader in the multi blockbuster head and neck cancer treatment landscape,” the analyst writes.

Price Action: MRUS stock is up 9.50% at $49.10 at last check Monday.

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This article Merus Licenses US Commercialization Rights For Cancer Potential Zenocutuzumab, Analyst Highlight Merus' Pipeline originally appeared on Benzinga.com

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