Belgian biotech firm Ablynx has come to an agreement with Merck to enable the latter to compete in introducing to the market a new generation of cancer therapies, the Financial Times reported. Ablynx uses antibodies from the camelid family of animals like llamas and alpacas to combat illnesses. It will be collaborating with Merck to produce immunotherapies that can strengthen the ability of the human body to fight cancer cells, the report said.

In order to build their capabilities, Merck and its competitors are tying up with small biotech firms in focused in immunotherapy. The deal with Ablynx is the newest in the spate of tie-ups in the segment, the report said.

Merck will be paying Brussels-listed Ablynx €20 million up front. In the initial three-year collaboration, the US firm will provide additional financing of as much as €10.7 million. Should the science prove to be a success, Ablynx may be able to get milestone payments and royalties amounting to €1.7 billion down the road, the report said.

Ablynx is in the process of making nanobodies or small antibodies that are more versatile compared to the bigger antibodies that humans have. The technology traces its roots in 1989 when Belgian scientists found that camelids are natural producers of two-molecular chain antibodies compared to the four-chain antibodies of humans and other mammals, the report said.

Aside from Merck, Ablynx is also working with Novartis, AbbVie and other drug firms, looking for treatments to illnesses like osteoporosis and Alzheimer's disease. However, the largest prize could come from nanobodies that bolster the body's "immune checkpoints" that are considered a weak link in its anti-cancer defenses. By aiding the immune system battle cancer, scientists hope that targeted therapies can be developed to serve as an alternative to existing methods of cancer treatment like chemotherapy, the report said.