BenevolentAI Ltd inks US$594m partnership with Merck KGaA

Under the licence agreement, BenevolentAI will identify and develop new compounds against three targets provided by Merck through hit identification to pre-clinical stage. The London-headquartererd company went public at Euronext Amsterdam in April 2022 through the acquicition of Odyssey Acquisition S.A. Its business model leverages the Benevolent Platform™, which aims to deliver novel drug candidates with a higher probability of clinical success than those developed using traditional methods, to generate new drug IP at scale and accelerate multiple novel assets to IND stage to commercialise in-house  or through out-licensing agreements. The company with research labs in Cambridge, UK, is running a Phase I/II trial for BEN-2293 (atopic dermatitis) to make it ready for out-licensing, as well as to complete a Phase I trial for BEN-8744 (ulcerative colitis) in 2023 before commencing a Phase II trial. Separately, BenevolentAI aims at entering into selective strategic platform collaborations to drive greater shareholder value in disease areas that it would not currently select for in-house clinical development.

The contract with Merck KGaA includes payments to BenevolentAI of up to US$594m, consisting of a low double-digit million dollar upfront payment on signing and discovery, development and commercial milestones. Tiered royalties will be payable on net sales of any commercialised products. According to the agreement, BenevolentAI will leverage its suite of AI chemistry design tools, in combination with its fully equipped wet lab facility in Cambridge (UK), to deliver small molecule drug development candidates into the Merck pipeline, ready for onward pre-clinical and clinical development.
 
Joanna Shields, Chief Executive Officer of BenevolentAI, said: “Our proprietary technology and extensively validated approach of combining AI, molecular biology, medicinal chemistry, and in vivo pharmacology supports the discovery of innovative drug candidates in fewer cycles. We look forward to working with the Merck team and are excited at the opportunities in our partnership.”