US pharma giant Merck & Co (NYSE:MRK) and its partner Newlink Genetics (NASDAQ:NLNK) were awarded government funding of USD 24.8 million (EUR 22.1m) to support the development of their experimental ebola vaccine, V920, Newlink said on Tuesday.

The finances were garanted by the Biomedical Advanced Research and Development Authority (BARDA), which is part of the US health department. The contract includes an option for additional financing of USD 51 million.

The financing will be used for additional trials required for the regulatory approval of the vaccine as well as to support manufacturing. The fresh funds come in addition to the USD 76.8 million that the partners have already received from BARDA for the development of V920. The new contract will accelerate full-scale production once the product is approved, Thomas Monath, COO of Newlink's infectious disease unit, was cited in the statement.

The vaccine was originally discovered by scientists at the Public Health Agency of Canada and licensed to Newlink. In 2014, Merck acquired the rights to the compound from Newlink, which received an upfront payment of USD 30 million and a milestone of USD 20 million after a pivotal clinical trial was launched in February 2015. If the vaccine is approved, Newlink will be entitled to sales royalties in the single-digit to the double-digit percentage range.

Fonte: See News America (TI/LG/TI)