United States-based Merck has exercised its option to extend the research phase of its and United States-based NGM Biopharmaceuticals broad, strategic collaboration for an additional two-year period from March 2020 to March 2022, it was reported yesterday.

The collaboration is concentrated on discovering, developing and commercialising novel biologic therapeutics across a wide range of therapeutic areas.

According to the terms of the original agreement, Merck had the option to extend the initial five-year research and early development phase of the collaboration for an additional two-year period and retains one additional two-year extension option that is exercisable in 2021. During the two-year extension period, Merck will continue to fund NGM's research and development efforts at similar levels to the original collaboration terms and, in lieu of the USD20m extension fee payable to NGM, Merck will make additional payments totalling up to USD20m in support of NGM's research and development activities during the two-year extension period in 2021 and 2022.