AstraZeneca and Merck enter $8.5bn cancer therapy collaboration

AstraZeneca has entered into an oncology collaboration with Merck, under which the companies will co-develop AstraZeneca’s Lynparza (olaparib).

Lynparza is a treatment for multiple cancers including breast, prostate and pancreatic cancers.

According to a  press release published on July 27, the companies will share development and marketing costs equally, as well as gross profits from the drug.

Merck will pay AstraZeneca up to $8.5 billion to enter the partnership.

The drug will be developed simultaneously to the companies’ existing drugs Imfinzi (durvalumab), produced by AstraZeneca, and Keytruda (pembrolizumab), sold by Merck.

Merck will continue to fund all costs of its drug Keytruda, while AstraZeneca will cover costs of Imfinzi.

Kenneth Frazier, CEO of Merck, said: “This global collaboration between AstraZeneca and Merck, two oncology leaders, will increase the possibilities for patients to have more treatment options for more cancers.”

AstraZeneca also announced that the companies will develop and commercialise AstraZeneca’s selumetinib, which is being developed for multiple indications including thyroid cancer.

Pascal Soriot, CEO of AstraZeneca, said: “By bringing together the expertise of two leading oncology innovators, we will accelerate Lynparza’s potential to become the preferred backbone of many immuno-oncology combination therapies.”

The collaboration agreement was signed and completed on July 26.

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