BMS, Ono Pharma and Merck resolve PD-1 antibody patent litigation

Merck to pay BMS and Ono royalties on global sales of Keytruda through 2026, and lump-sum payment of $625 million.

As part of the agreement, Merck will make an initial payment of $625 million to BMS and Ono. Merck is also obligated to pay ongoing royalties on global sales of Keytruda of 6.5% from 1 January 2017 through 31 December 2023, and 2.5% from 1 January 2024 through 31 December 2026. Under the agreement, the companies have also granted certain rights to each other under their respective patent portfolios pertaining to PD-1. The royalties will be shared between BMS and Ono in a 75/25 percent allocation, respectively.

“BMS and Ono’s agreement with Merck protects our scientific discoveries and validates the strong intellectual property rights we secured as the early innovators in the science of PD-1, a key mechanism in immuno-oncology that has proven to have transformational impact in cancer care,” says Giovanni Caforio, CEO, BMS. “Today’s agreement is also a good decision for patients as it supports the continuation of ongoing research and maintains access to anti-PD-1 therapies for cancer patients around the world.”