) allergy business unit, Allergopharma, has signed an exclusive
licensing agreement with S-TARget therapeutics for developing a new
generation of therapies for the causal treatment of allergies
(caused by significant allergens such as dust mites and pollen)
using the latter's S-TIR technology.
Terms of the Deal
Under this deal, Merck KGaA has gained worldwide rights for the
development and marketing of products developed using the S-TIR
technology platform. Merck KGaA intends to invest heavily in
R&D for the development of specific allergy therapeutics. The
details of the deal were not disclosed.
According to the press release issued by Merck KGaA, the market for
allergy therapeutics (without symptomatic drugs) is growing
globally. Given the rising number of patients suffering from
allergies, there is an urgent need for new therapies in this field.
Some approved drugs for the treatment of allergy include Ragwitek
(short ragweed pollen-induced allergic rhinitis with or without
conjunctivitis) and Oralair (grass pollen-induced allergic rhinitis
with or without conjunctivitis).
We are positive on Merck KGaA's agreement with S-TARget. S-TARget's
S-TIR technology will help Merck KGaA, which is currently focusing
on innovating the next generation of allergy therapy, to strengthen
its allergy pipeline. Given that Merck KGaA already occupies the
foremost position in the world in the development of recombinant
allergens (biotechnologically manufactured allergens), the
exclusive license on S-TIR technology will further boost the
company's opportunities in this field.
Merck KGaA carries a Zacks Rank #3 (Hold). Some better-ranked
stocks in the pharmaceutical sector are Allergan Inc. (
), Mallinckrodt plc (
) and Endo International plc (
). All these stocks carry a Zacks Rank #1 (Strong Buy).
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