Merck & Co killed two birds with one broad agreement with Protiva. The company will drop charges against Merck subsidiary, Sirna Therapeutics, allowing the transfer of important technology from Sirna to Merck according to the $1.1 billion acquisition deal. Additionally, Protiva granted Merck nonexclusive rights to its SNALP (stable nucleic acid-lipid particles) technology for R&D of RNAi therapeutics.
Protiva filed a lawsuit against Sirna alleging that the company had wrongfully used and disclosed its IP. The firm obtained an injunction from the Superior Court of California prohibiting Sirna from using, disclosing, transferring, licensing, selling, or otherwise encumbering Protiva’s trade secrets and know-how, except as permitted in the target areas defined in their original strategic alliance agreement.
In relation to the licensing deal, Protiva will receive a one-time payment with the potential for development milestone fees and royalties.