By Mauro Orru

Merck KGaA said Monday that it has entered into an out-licensing agreement via its subsidiary Ares Trading SA with U.S. biotechnology company Vera Therapeutics for the development of investigational therapy, atacicept.

The German pharmaceutical and chemicals company said it would receive 10% equity in Vera Therapeutics, up to 605 million euros ($718.5 million) related to some development and commercial targets, as well as royalties on future net sales.

Vera Therapeutics will be responsible for the development and commercialization of the program, taking atacicept into a Phase 2b study in IgA nephropathy, an autoimmune kidney disease.

Merck KGaA, which acquired exclusive world-wide development and commercialization rights for atacicept in 2008 from ZymoGenetics, said a Phase 2a trial it conducted showed promising results in IgA nephropathy.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

11-09-20 0845ET