Merus & Biohaven Team Up to Co-Develop Three Novel Bispecific ADCs

Merus N.V. (Nasdaq: MRUS) and Biohaven Ltd. (NYSE: BHVN) have announced a strategic collaboration to co-develop three novel bispecific antibody drug conjugates (ADCs), leveraging Merus' leading Biclonics® technology platform and Biohaven's next-generation ADC conjugation and payload platform technologies. This collaboration aims to rapidly advance bispecific antibody candidate ADCs based on the Merus Biclonics® platform, with the potential to generate new and differentiated bispecific therapies with greater potency and selectivity over currently available monoclonal ADC approaches.

Under the terms of the agreement, Biohaven is responsible for the preclinical ADC generation of three Merus bispecific antibodies under mutually agreed research plans. The agreement includes two Merus bispecific programs generated using the Biclonics® platform, and one program under preclinical research by Merus. Each program is subject to mutual agreement for advancement to further development, with the parties then sharing subsequent external development costs and commercialization, if advanced.



"We're excited to collaborate with Biohaven, leveraging their broad range of linker/payload and conjugation technologies, and expertise with the research and development of ADCs, to rapidly advance bispecific antibody candidate ADCs based on the Merus Biclonics® platform," said Peter B. Silverman, Chief Operating Officer of Merus. "We believe that the combination of our Biclonics® technology, validated by the recent FDA approval of Bizengri® and continued clinical success with petosemtamab, together with the Biohaven suite of ADC technologies, has the potential to generate new and differentiated bispecific therapies with greater potency and selectivity over currently available monoclonal ADC approaches."

"We believe this collaboration with Merus will accelerate our ability to create highly differentiated multispecific ADCs, leveraging Biohaven’s innovative conjugation and payload technologies to deliver optimized ADCs with the potential to significantly benefit patients across various cancer types through an enhanced efficacy and safety profile," added Brian Lestini, President, Oncology of Biohaven.

Pursuant to the transaction, Merus will receive an upfront payment and license fee at ADC candidate nomination of the first program, with Merus to assume the preclinical bispecific antibody generation cost, and Biohaven to assume the preclinical ADC generation cost. Thereafter, upon mutual agreement to advance each program, the parties plan to share further development and commercialization costs.



The collaboration's cost-sharing structure balances risk and reward for both Merus and Biohaven by distributing development and commercialization costs across both parties. This approach reduces the financial burden on each company, allowing them to maintain their cash positions while pursuing high-risk, high-reward ADC development. By sharing costs, Merus and Biohaven can align their interests and incentives, fostering a collaborative environment focused on successful program advancement and preserving significant upside potential for both parties.

In conclusion, the strategic collaboration between Merus and Biohaven leverages the strengths of both companies to rapidly advance bispecific antibody candidate ADCs based on the Merus Biclonics® platform. By combining Merus' Biclonics® technology with Biohaven's innovative ADC conjugation and payload technologies, the collaboration has the potential to generate new and differentiated bispecific therapies with greater potency and selectivity over currently available monoclonal ADC approaches. The cost-sharing structure of the collaboration balances risk and reward for both parties, creating an asymmetric risk-reward profile that favors successful program advancement and commercialization.