Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Stock

Merck signs up to $3.3 billion cancer drug deal with China-based LaNova

By Leroy Leo

(Reuters) -Merck has licensed an early-stage cancer drug from a China-based biotech in an up to $3.3 billion deal, two months after a similar therapy from Summit Therapeutics (NASDAQ:SMMT) outperformed its blockbuster Keytruda in a late-stage trial in the country.

The deal allows Merck (NS:PROR) to take over development of privately held LaNova Medicines’ LM-299, the companies said on Thursday.

The drug candidate targets a protein called PD-1, which prevents the immune system from killing cancerous cells. It also curbs levels of another protein called VEGF, which can encourage tumor growth if found in excess.

Under the agreement, Merck will pay $588 million upfront. LaNova is also eligible to receive up to $2.7 billion in milestone payments.

In September, Summit and its partner Akeso released data that showed patients using their drug ivonescimab, which targets the same proteins, had significantly better survival rates than those on Keytruda.

This class of drug has been attracting increased interest for deals. On Wednesday, German drugmaker BioNTech (NASDAQ:BNTX) said it would acquire China’s Biotheus to gain access to its so-called bi-specific antibody that targets PD-1 and VEGF.

BMO analyst Evan Seigerman said the LaNova deal offers a hedge to Merck after the data shown by Summit and others.

“The company (Merck) still maintains the best-in-class PD-1 (in Keytruda) with a wall of clinical data and a rapidly advancing pipeline of other modalities to back it,” Seigerman added. “LaNova’s LM-299 simply adds another arrow to Merck’s arsenal.”

Keytruda became the world’s biggest-selling drug last year, with sales of about $25 billion. But the therapy is set to lose its patent protection by the end of the decade, pushing Merck to scout for deals.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com