Merck Assigns Chimeric Antigen Receptor T-cell (CAR-T) Rights to Intrexon

Darmstadt, Germany (ots/PRNewswire) -

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- Agreement enables Merck to maintain an investment in the rapidly
advancing oncology field of CAR-T, while focusing its R&D efforts
- Intrexon to issue Merck $150 million of Intrexon stock and a $25
million convertible note; Intrexon to receive a $25 million cash
investment

Merck, a leading science and technology company, today announced
that it has evolved its agreement with Intrexon Corporation (NASDAQ:
XON) for the development of Chimeric Antigen Receptor T-cell (CAR-T)
therapies, genetically engineered T-cells with synthetic receptors
that recognize a specific antigen expressed on tumor cells. The
agreement with Intrexon and its wholly-owned subsidiary, Precigen,
Inc., enables Merck to continue to implement its focused R&D
strategy, while maintaining an investment in the future potential of
next-generation CAR-T development.

Under the terms of the agreement, Merck will assign its exclusive
CAR-T development rights to Intrexon. Merck will receive shares of
Intrexon common stock valued at $150 million in exchange for
assigning Intrexon its CAR-T rights.

"Merck is excited to maintain its interest in the potential of
CAR-T technology, which may offer significant future benefits to
patients fighting cancer," said Belén Garijo, Member of the Executive
Board and CEO Healthcare, Merck. "The agreement is also illustrative
of our efforts to enhance our focus on accelerating the delivery of
our innovative clinical pipeline to patients."

Merck first entered into a collaboration and license agreement
with Intrexon in 2015 to develop and commercialize CAR-T cancer
therapies utilizing Intrexon's proprietary RheoSwitch Therapeutic
System® and the Sleeping Beauty non-viral gene integration
technology. The combination of these platforms enables regulation of
gene expression and delivery with a non-viral approach and
preclinical data indicate the potential to improve therapeutic safety
and facilitate shortened manufacturing to improve time-to-treatment.
As of December 31, 2017, these rights were considered intangible
assets not yet available for use with a carrying amount of EUR 104
million.

"Merck's leading immuno-oncology research and commitment to
developing innovative medicines made them an ideal partner for us in
advancing targeted and controllable CAR-T therapies," said Helen
Sabzevari, PhD, President of Precigen. "We look forward to continued
development of these promising treatments with the goal of delivering
more cost-effective, powerful and precise therapies to patients in
need."

In addition to receiving $150 million of Intrexon common stock,
this agreement also includes a further $25 million investment in
Intrexon. In return, Merck will receive a $25 million convertible
note, providing the option to receive either Precigen or Intrexon
stock. The closing of the transactions contemplated by the agreement
is subject to customary closing conditions, including the expiration
of the waiting period under the Hart-Scott-Rodino Antitrust
Improvements Act.

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ots Originaltext: Merck KGaA
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