Merck Inks $3.3B Licensing Deal With Chinese Biotech for Cancer Therapy

Zacks11-16

Merck MRK announced that it has entered into an exclusive licensing deal with China-based privately-held biotech company LaNova Medicines for the latter’s PD-1xVEGF targeting bispecific antibody ...

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In return, LaNova will receive an upfront cash payment of $588 million. In addition, Merck will have to pay up to $2.7 billion in milestone payments to LaNova.The deal is expected to be closed by the end of this year, subject to the fulfillment of customary closing conditions, including regulatory approvals.LaNova is evaluating LM-299 in an early-stage study in China, which is currently enrolling study participants. Merck intends to advance the clinical development of the drug “with speed and rigor for patients in need.”Though the deal seems encouraging, Merck still has a long way to go. The idea behind the LaNova deal is to diversify MRK’s revenue base, which has become highly depende","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999014559.SGD":"United Income Focus Trust Dis SGD","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","SGXZ57979304.SGD":"United Global Healthcare A Acc SGD-H","LU1934455863.HKD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"A\" (HKD) ACC","LU1061106388.HKD":"BGF WORLD HEALTHSCIENCE \"A2\" (HKDHDG) ACC","BK4516":"特朗普概念","TIL":"Instil Bio, Inc.","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","LU0106261372.USD":"SCHRODER ISF US LARGE CAP \"A\" ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU1037948541.HKD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"A\" (HKD) ACC","LU1917777945.USD":"安联专题基金Cl AT Acc","BNTX":"BioNTech SE","SG9999015341.SGD":"United Income Focus Trust Acc SGD-H","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","BK4139":"生物科技","SG9999001176.SGD":"UOB UNITED GLOBAL HEALTHCARE \"SGD\" (ACC)","SG9999002232.USD":"Allianz Global High Payout USD","LU0861579265.USD":"联博低波幅策略股票基金A","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","LU0265550359.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A2\" (USD) ACC","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","LU1934455277.USD":"AB SICAV I LOW VOLATILITY TOTAL RETURN EQUITY PORT \"AD\" (USD) INC","BK4535":"淡马锡持仓","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","LU0058720904.USD":"联博国际健康护理基金A","IE00BJJMRZ35.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","BK4559":"巴菲特持仓","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","BK4550":"红杉资本持仓","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0965509010.AUD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (AUDHDG) INC","LU0965508806.USD":"AB LOW VOLATILITY EQUITY PORTFOLIO \"AD\" (USD) INC","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","LU1291159041.SGD":"CPR Invest - Global Silver Age A2 Acc SGD-H","SMMT":"Summit Therapeutics PLC","LU0234572021.USD":"高盛美国核心股票组合Acc","SG9999014542.SGD":"United Income Focus Trust Acc SGD","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","BK4505":"高瓴资本持仓","LU2488822045.USD":"ALLIANZ CHINA HEALTHY LIVING \"AT\" (USD) ACC","LU1066051225.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AC\" (USD) ACC","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","MRK":"默沙东"},"translate_title":"默克与中国生物技术公司签署3.3 B美元的癌症治疗许可协议","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TIL":1,"SMMT":1,"BNTX":1,"MRK":1},"content_text":"Merck MRK announced that it has entered into an exclusive licensing deal with China-based privately-held biotech company LaNova Medicines for the latter’s PD-1xVEGF targeting bispecific antibody candidate, LM-299.\nPer the terms of the deal, Merck will acquire the global rights to develop and market LM-299. In return, LaNova will receive an upfront cash payment of $588 million. In addition, Merck will have to pay up to $2.7 billion in milestone payments to LaNova.\nThe deal is expected to be closed by the end of this year, subject to the fulfillment of customary closing conditions, including regulatory approvals.\nLaNova is evaluating LM-299 in an early-stage study in China, which is currently enrolling study participants. Merck intends to advance the clinical development of the drug “with speed and rigor for patients in need.”\nMRK Stock Performance\nYear to date, Merck’s shares have lost 9.8% compared with the industry’s 7.9% decline.\nImage Source: Zacks Investment Research\nTherapies Rivaling Merck’s LM-299\nDeveloping bispecific antibodies that target two proteins, namely PD-1 and VEGF, has been one of the lucrative areas in the treatment of cancer of late. Several smaller biotech companies like Summit Therapeutics SMMT, Instil Bio TIL and BioNTech BNTX are already engaged in developing their respective PD-1/VEGF-targeting antibody candidates, namely ivonescimab, SYN-2510 and BNT327.\nAmong these, Summit Therapeutics is ahead in terms of clinical development. It recently reported encouraging clinical data from a phase III study that showed that treatment with ivonescimab outperformed Merck’s Keytruda in certain patients with non-small cell lung cancer (NSCLC). Thestudy showed that the SMMT antibody reduced the risk of disease progression or death by nearly half compared with Keytruda.\nThe above results also make SMMT’s ivonescimab the first drug to achieve a statistically significant improvement compared to MRK’s Keytruda in a head-to-head set-up in a late-stage study in NSCLC indication. Keytruda is also the standard of care in NSCLC indication.\nHowever, the BNTX and TIL candidates are in early or mid-stage development across multiple solid tumors. One of these candidates even carries an edge over ivonescimab. Instil Bio’s SYN-2510 has shown the potential to block both VEGF-A and VEGF-B compared with ivonescimab, which blocks only VEGF-A.\nAll these deals have one thing in common — all the companies have in-licensed their respective PD-1/VEGF drugs from Chinese biotechs. Summit acquired the exclusive license for ivonescimab from Akeso in 2022 while Instil Bio signed a deal with ImmuneOnco Biopharmaceuticals for SYN-2510 in August. While BioNTech signed a deal for BNT327 with Biotheus last year, BNTX offered to acquire its partner for $800 million this Tuesday.\nOur Take\nThough the deal seems encouraging, Merck still has a long way to go. The idea behind the LaNova deal is to diversify MRK’s revenue base, which has become highly dependent on Keytruda. In the first nine months of 2024, MRK generated nearly 45% of its total revenues from the drug’s sales. With concerns over Keytruda’s potential loss of exclusivity post-2028, the successful development and potential commercialization of an antibody like LM-299 could help Merck lower its dependence on a single product for growth.\nThe dual mechanism offered by LM-299 differentiates it from currently available therapies for solid tumors (including Keytruda), as there is a potentially higher expression of both PD-1 and VEGF in tumor tissues compared to the normal tissues in the body.\n\nMerck & Co., Inc. Price\n\nMerck & Co., Inc. price | Merck & Co., Inc. Quote\n\nMRK’s Zacks Rank\nMerck currently carries a Zacks Rank #3 (Hold).\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nMerck & Co., Inc. (MRK) : Free Stock Analysis Report\nSummit Therapeutics PLC (SMMT) : Free Stock Analysis Report\nInstil Bio, Inc. (TIL) : Free Stock Analysis Report\nBioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"Company Corporation","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483989580"}