NetScientific Plc reports that its portfolio company, PDS Biotechnology Corporation, a clinical-stage immunotherapy company developing a growing pipeline of targeted immunotherapies for cancer and infectious disease, announced an exclusive global license agreement with Merck KGaA, Darmstadt, Germany for the tumour-targeting IL-12 fusion protein M9241 (formerly known as NHS-IL12), which will join the pipeline as PDS0301. M9241 appears to enhance the proliferation, potency, and longevity of T cells in the tumour. The combination of Versamune® and IL-12 is patented by PDS Biotech and is designed to overcome tumour immune suppression utilizing a different mechanism from checkpoint inhibitors.

Under the terms of the agreement, PDS Biotech will receive from Merck KGaA, Darmstadt, Germany an exclusive license to M9241. PDS Biotech will assume responsibility for future development, commercialization, and manufacturing of M9241. Under the terms of the agreement, Merck KGaA, Darmstadt, Germany will receive an upfront cash payment of $5 million and will be entitled to up to $11 million in development and regulatory milestone payments including first commercial sales for the first 2 indications, and up to $105 million in commercial milestones, and a 10% royalty on future sales of M9241 with standard step-down provisions.

Merck KGaA will receive 378,787 shares of PDS Biotech's common stock having a value of $5 million, based on the closing price of PDS Biotech's common stock on December 30, 2022.