RCS - Frontier IP Group - Exscientia announces collaboration with Merck

Frontier IPAnnouncement

21/09/2023 07:00

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RNS Number : 1236N  Frontier IP Group plc  21 September 2023

Reach - a non-regulatory announcement

AIM: FIPP

21 September 2023

 

Frontier IP Group Plc

("Frontier IP" or the "Group")

 

 

Portfolio news - Exscientia announces AI drug discovery collaboration with
Merck KGaA, Darmstadt, Germany worth up to $674 million

 

 

Frontier IP, a specialist in commercialising intellectual property, today
notes the following announcement from portfolio company Exscientia plc
("Exscientia" or the "Company") of a new collaboration with Merck KGaA,
Darmstadt, Germany, ("Merck") focused on the discovery of novel small molecule
drug candidates across oncology, neuroinflammation and immunology.

Under the terms of the agreement, Exscientia will receive an upfront cash
payment of $20 million from Merck and will be eligible for discovery,
development, regulatory and sales-based milestone payments of up to $674
million in aggregate if all milestones for three initial programmes are
achieved.

Frontier IP holds a 0.4 per cent equity stake in Exscientia.

 

Exscientia statement begins:

 

·    Exscientia Announces AI Drug Discovery Collaboration with Merck KGaA,
Darmstadt, Germany

·    Collaboration will leverage Exscientia's precision design
capabilities to focus on previously unsolved drug design challenges

·    Exscientia is eligible to receive up to $674 million in discovery,
development, regulatory and sales-based milestones for three projects, in
addition to single to double digit royalty payments on net sales

·    Up to $113 million of potential milestone payments in the discovery
phase, with $20 million upfront at initiation for three projects

OXFORD, U.K. Exscientia plc (Nasdaq: EXAI) today announced a new collaboration
with Merck KGaA, Darmstadt, Germany
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fu23553314.ct.sendgrid.net%2Fls%2Fclick%3Fupn%3DDTsaNO0Ep91gM4NRYofeSrlNQy6Bn1AZFoQtEgQ8FIxBwHWX-2BUQ34bC7B4lCra8oEV-2FytaZ6Gd4r0KPWMB02rqnHzyx2-2F6ap7WUzFdZ5HEg3MPz6AvygTPqW1J3tEsYZRKPxDEYyLCaFPyWjybosvMcrZuRQRS1QqW0tQMWgfT-2BwK-2BxISL-2FRiq-2B-2BG1yD-2BAnpiMoNl1F3qnSV0LTybTrlFsKgkGNnwVrrBupn5pj-2Fm1Q-2Fb31Rlo7iPMB5hnqUwKpmiCmKCGw-2BuZhKVo-2FoLab-2FlNh0HTyG1Vf5VCLNl7fqvzB3MssvuZQLLDNoWrQYjQY8cS_S_doCaxM-2FOGI2lRhIP-2BA07DfZxc4I1a-2B9ZjZs-2FXpLxsnqgyrfpCtTyAwi0fDawhlOVIGBHEYuf-2BizuxqDXUzL-2BYbhMDj0bJqh-2F4EG3qD4mi0fyNrFdSxWt0JCar0VMbBeUmJVc8v86UTNv5-2B9wA6PLCOCrqGVEdUDESSHAll80rXaljZall9Qd4PV7FUkulM13YYEjyzBUHkrB6uWgOAVWrz9Jgm5dZ3f8ITLVtk7hdTU-3D&data=05%7C01%7C%7C5e848a761ffd430f680808dbb9adc809%7Cbffa551e16cb466f8c6a2519187fe364%7C0%7C0%7C638307928259441197%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ZHbv1d4FtKM12EPMI7l2KGh6Py%2B%2FgsBLJlwl4WXQpyo%3D&reserved=0)
focused on the discovery of novel small molecule drug candidates across
oncology, neuroinflammation and immunology. The multi-year collaboration will
utilise Exscientia's AI-driven precision drug design and discovery
capabilities while leveraging Merck KGaA, Darmstadt, Germany's disease
expertise in oncology and neuroinflammation, clinical development capabilities
and global footprint.

Three potential first-in-class or best-in-class targets have been identified
as the initial focus of the partnership. The collaboration allows Merck KGaA,
Darmstadt, Germany and Exscientia to identify additional targets in oncology
and immunology or other mutually agreed disease areas. Should Exscientia
identify additional targets for the collaboration, the company would be
responsible for target validation in addition to drug design and eligible for
additional discovery milestones.

"We're pleased that Merck KGaA, Darmstadt, Germany chose our team of experts
for this AI-led drug discovery collaboration," said Professor Andrew Hopkins
FRS FMedSci, founder and Chief Executive Officer of Exscientia. We look
forward to complementing their outstanding scientific acumen with our
integrated technology platform and ability to generate novel data in order to
address some of the hardest drug design challenges in cancer and immunology."

Under the terms of the agreement, Exscientia will receive an upfront cash
payment of $20 million from Merck KGaA, Darmstadt, Germany and will be
eligible for discovery, development, regulatory and sales-based milestone
payments of up to $674 million in aggregate if all milestones for all three
initial programmes are achieved. If Merck KGaA, Darmstadt, Germany
commercialises a therapeutic from one of the initial targets of the
collaboration, Exscientia will receive tiered royalties on product sales
ranging from mid-single-digits to low-double-digits. The upfront cash payment
of $20 million is expected to be reflected in second half 2023 results for
Exscientia as cash inflows from collaborations and recognised as revenue over
the duration of the agreement.

Forward-looking statements

This press release contains forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995, including with
respect to the initiation and duration of Exscientia's collaboration with
Merck and the activities undertaken in connection with the collaboration. Any
statement describing Exscientia's goals, plans, expectations, projections,
intentions or beliefs is a forward-looking statement and should be considered
an at-risk statement. Such statements are subject to a number of risks,
uncertainties and assumptions, including those related to the success of
Exscientia's collaboration with Merck. In light of these risks and
uncertainties, and other risks and uncertainties that are described in the
Risk Factors section and other sections of Exscientia's Annual Report on Form
20-F, filed with the Securities and Exchange Commission (SEC) on March 23,
2022 (File No. 001-40850), and other filings that Exscientia makes with the
SEC from time to time (which are available at https://www.sec.gov/
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fu23553314.ct.sendgrid.net%2Fls%2Fclick%3Fupn%3DDTsaNO0Ep91gM4NRYofeSrlNQy6Bn1AZFoQtEgQ8FIxBwHWX-2BUQ34bC7B4lCra8oEV-2FytaZ6Gd4r0KPWMB02rvKpmCcyYRgtOI0X27xqEDyCrLcPZe0G6SkpQmFmf94XFRUQnBuY5kcGDHKydQgjrngc8nd7T5xZJzL0zCQBmkta9emQ4MP-2FevSA5jz7SkLdTWv3LZ7EaEZ1JfsPGEjWjnrz4PhmaQ3ztQypyX8Yq3q77SwIewFn84OtbewOFWHRt7qw5dqdmqonCOYmKipPPyjHS2beJglZdVaCJ9D-2Fg-2Fw-3DWIdM_doCaxM-2FOGI2lRhIP-2BA07DfZxc4I1a-2B9ZjZs-2FXpLxsnqgyrfpCtTyAwi0fDawhlOVIGBHEYuf-2BizuxqDXUzL-2BYeGiFezXGjx3nEl-2Fm48LNq6UQhagL3viRcJQr6NF2MJH2H9y-2ByjtuyaSIDCxlAYKXAMLjCIk41jgYJKM29NuiUdkhstZqQbL5sesN2xTOI0qG3HA6gma0ZoqLmQd7CNJl7vhK8nU2a8QkhkOy13iJ2c-3D&data=05%7C01%7C%7C5e848a761ffd430f680808dbb9adc809%7Cbffa551e16cb466f8c6a2519187fe364%7C0%7C0%7C638307928259597446%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=tJwEU2zZjRALbZ7P8OnXgpNmOuG0KRr23gk0qJEoD7Y%3D&reserved=0)
), the events and circumstances discussed in such forward-looking statements
may not occur, and Exscientia's actual results could differ materially and
adversely from those anticipated or implied thereby. Although Exscientia's
forward-looking statements reflect the good faith judgement of its management,
these statements are based only on facts and factors currently known by the
Company. As a result, you are cautioned not to rely on these forward-looking
statements.

 

Exscientia statement ends

 

 

ENQUIRIES

 

 

 Frontier IP Group Plc                                                  T: 020 7332 2338
 Neil Crabb, Chief Executive                                            neil@frontierip.co.uk

 Andrew Johnson, Communications & Investor Relations                    M: 07464 546 025

 Company website: www.frontierip.co.uk (http://www.frontierip.co.uk/)
 Allenby Capital Limited (Nominated Adviser)                            T: 0203 328 5656

 Nick Athanas / George Payne

 Exscientia plc

 Media

 Oliver Stohlmann                                                       media@exscientia.ai (mailto:media@exscientia.ai)

 Investor Relations

 Sara Sherman                                                           investors@exscientia.ai

 

ABoUT EXscientia

Exscientia is an AI-driven precision medicine company committed to
discovering, designing and developing the best possible drugs in the fastest
and most effective manner. Exscientia developed the first-ever functional
precision oncology platform to successfully guide treatment selection and
improve patient outcomes in a prospective interventional clinical study, as
well as to progress AI-designed small molecules into the clinical setting. Our
internal pipeline is focused on leveraging our precision medicine platform in
oncology, while our partnered pipeline broadens our approach to other
therapeutic areas. By pioneering a new approach to medicine creation, we
believe the best ideas of science can rapidly become the best medicines for
patients. For more information visit us on www.exscientia.ai
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or follow us on Twitter @exscientiaAI
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ABOUT FRONTIER IP

Frontier IP unites science and commerce by identifying strong intellectual
property and accelerating its development through a range of commercialisation
services. A critical part of the Group's work is involving relevant industry
partners at an early stage of development to ensure technology meets real
world demands and needs.

The Group looks to build and grow a portfolio of equity stakes and licence
income by taking an active involvement in spin-out companies, including
support for fund raising and collaboration with relevant industry partners at
an early stage of development.

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