Lumos Pharma to receive $60 million in deal with Merck

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Lumos Pharma Inc., a Texas-based clinical-stage biopharmaceutical company that merged with NewLink Genetics Corp. of Ames earlier this year, has entered into a definitive agreement to sell a priority review voucher for one of its drugs to Merck & Co. for $100 million. The PRV was granted in conjunction with the approval by the U.S. Food and Drug Administration of Ervebo, a vaccine developed for the prevention of the Zaire Ebola virus disease. Under the terms of the original license agreement, Lumos Pharma is entitled to retain 60% of the value of the PRV, meaning Merck will pay Lumos $60 million. The transaction remains subject to customary closing conditions, including antitrust review. Lumos Chairman, CEO and President Rick Hawkins said in a press release that the sale provides an important source of capital for initiating its Phase 2b trial of its lead drug candidate LUM-201, a treatment for Pediatric Growth Hormone Deficiency, prior to the end of 2020.