Merck to Acquire Investigational B-Cell Depletion Therapy, CN201, from Curon Biopharmaceutical
August 09 2024 - 6:45AM
Business Wire
CN201 is a next generation CD3xCD19
bispecific antibody that augments and diversifies Merck’s pipeline,
with potential applications in B-cell malignancies and autoimmune
diseases
Merck (NYSE: MRK), known as MSD outside of the United States and
Canada, and Curon Biopharmaceutical (Curon), a privately held
biotechnology company, today announced that the companies have
entered into a definitive agreement under which Merck, through a
subsidiary, has agreed to acquire CN201, a novel investigational
clinical-stage bispecific antibody for the treatment of B-cell
associated diseases.
“We continue to identify opportunities to expand and diversify
our pipeline,” said Dr. Dean Y. Li, president, Merck Research
Laboratories. “Early clinical data have provided robust evidence
for the potential of CN201 to target and deplete circulating and
tissue B cells with the potential to treat a range of malignant and
autoimmune diseases.”
Under the terms of the agreement, Merck through a subsidiary
will acquire full global rights to CN201 for an upfront payment of
$700 million in cash. Curon is also eligible to receive up to $600
million in milestone payments associated with the development and
regulatory approval of CN201.
CN201 is currently being evaluated in Phase 1 and Phase 1b/2
clinical trials for the treatment of patients with relapsed or
refractory non-Hodgkin’s lymphoma (NHL) and relapsed or refractory
B-cell acute lymphocytic leukemia (ALL), respectively. Preliminary
data suggest CN201 has activity in patients with relapsed or
refractory B-cell hematologic malignancies and is well tolerated,
with the potential to induce significant and sustained reductions
in B-cell populations. Merck plans to evaluate CN201 as a treatment
for B-cell malignancies as well as investigate its potential to
provide a novel, scalable option for the treatment of autoimmune
diseases.
“This agreement reflects the drive and dedication of the Curon
team,” said Zhihong Chen, president and chief executive officer,
Curon. “As a pioneer in immuno-oncology, Merck is well positioned
to build upon the work done to-date and investigate the
wide-ranging, first-in-class potential of CN201.”
Closing of the proposed transaction is subject to approval under
the Hart-Scott-Rodino Antitrust Improvements Act and other
customary conditions. The transaction is expected to close in the
third quarter of 2024 and be accounted for as an asset acquisition.
Merck expects to record a pre-tax charge of approximately $750
million (reflecting the upfront payment and other related costs),
or approximately $0.28 per share, to be included in non-GAAP
results in the quarter that the transaction closes. As a matter of
policy, Merck provides updates to its financial outlook once each
quarter and will provide an update to its full-year financial
outlook when it reports third-quarter 2024 results.
Advisors Hogan Lovells is serving as Merck’s legal
advisor in this transaction. Centerview Partners LLC acted as
financial advisor to Curon and Goodwin Procter LLP as the company’s
legal advisor.
About CN201 CN201 is a novel CD3xCD19-targeting
T-cell-engager bispecific antibody, designed to target B cells for
elimination by T cells. CN201 is currently being evaluated in Phase
1 and Phase 1b/2 clinical trials for the treatment of relapsed or
refractory non-Hodgkin’s lymphoma and relapsed or refractory acute
lymphocytic leukemia, respectively.
About Curon Biopharmaceutical Curon Biopharmaceutical is
a clinical-stage company developing bispecific antibodies and
antibody-drug conjugates for the treatment of cancer, from both
internal research and external collaborations. The company is a
Cayman Islands incorporated company with operations in Australia,
Hong Kong and Shanghai, China.
About Merck At Merck, known as MSD outside of the United
States and Canada, we are unified around our purpose: We use the
power of leading-edge science to save and improve lives around the
world. For more than 130 years, we have brought hope to humanity
through the development of important medicines and vaccines. We
aspire to be the premier research-intensive biopharmaceutical
company in the world – and today, we are at the forefront of
research to deliver innovative health solutions that advance the
prevention and treatment of diseases in people and animals. We
foster a diverse and inclusive global workforce and operate
responsibly every day to enable a safe, sustainable and healthy
future for all people and communities. For more information, visit
www.merck.com and connect with us on X (formerly Twitter),
Facebook, Instagram, YouTube and LinkedIn.
Forward-Looking Statement of Merck & Co., Inc., Rahway,
N.J., USA This news release of Merck & Co., Inc., Rahway,
N.J., USA (the “company”) includes “forward-looking statements”
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
are based upon the current beliefs and expectations of the
company’s management and are subject to significant risks and
uncertainties. There can be no guarantees with respect to pipeline
candidates that the candidates will receive the necessary
regulatory approvals or that they will prove to be commercially
successful. If underlying assumptions prove inaccurate or risks or
uncertainties materialize, actual results may differ materially
from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general
industry conditions and competition; general economic factors,
including interest rate and currency exchange rate fluctuations;
the impact of pharmaceutical industry regulation and health care
legislation in the United States and internationally; global trends
toward health care cost containment; technological advances, new
products and patents attained by competitors; challenges inherent
in new product development, including obtaining regulatory
approval; the company’s ability to accurately predict future market
conditions; manufacturing difficulties or delays; financial
instability of international economies and sovereign risk;
dependence on the effectiveness of the company’s patents and other
protections for innovative products; and the exposure to
litigation, including patent litigation, and/or regulatory
actions.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in the company’s Annual
Report on Form 10-K for the year ended December 31, 2023 and the
company’s other filings with the Securities and Exchange Commission
(SEC) available at the SEC’s Internet site (www.sec.gov).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808638055/en/
Merck Media: Robert Josephson (203) 914-2372
Justine Moore (347) 281-375
Merck Investor: Peter Dannenbaum (732) 594-1579
Merck (NYSE:MRK)
Historical Stock Chart
From Sep 2024 to Oct 2024
Merck (NYSE:MRK)
Historical Stock Chart
From Oct 2023 to Oct 2024