Merck, Daiichi Sankyo Ink Commercialization Deal for Up to $22 Billion

By Ben Glickman

Merck and Daiichi Sankyo agreed to jointly develop and commercialize three potential cancer treatments in a deal worth up to $22 billion.

Merck and Daiichi Sankyo will develop and commercialize three antibody drug conjugate candidates--patritumab deruxtecan, ifinatamab deruxtecan and raludotatug deruxtecan--worldwide. Daiichi Sankyo will retain exclusive rights in Japan.

Merck will pay Daiichi Sankyo $4 billion up front and $1.5 billion in continuation payments over the next two years. If certain sales milestones are met, Merck will contribute up to $16.5 billion down the line.

The ADC candidates, all in different stages of clinical development, are being studied to treat solid tumors on their own or when combined with other treatments.

The companies said they plan to submit a biologics license application for patritumab deruxtecan by the end of March 2024. The treatment has already received breakthrough therapy designation from the U.S. Food and Drug Administration.

Merck said it would record a pretax charge of $5.5 billion related to the transaction, which would lower fourth-quarter and full-year results.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

October 19, 2023 20:15 ET (00:15 GMT)

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