Merck boosts oncology pipeline with $1bn deal
Merck has announced plans to acquire Peloton Therapeutics, a clinical-stage biopharmaceutical company, in a $1.05 billion bid to boost its oncology pipeline.
The deal, which will see Merck (known as MSD outside the US and Canada) acquire Peloton through a subsidiary, was announced yesterday, May 21.
Peloton is focused on the development of novel small molecule therapeutic candidates targeting hypoxia-inducible factor-2α (HIF-2α) for the treatment of patients with cancer and other non-oncology diseases.
Roger Perlmutter, president of Merck Research Laboratories, said: “This acquisition exemplifies Merck’s strategy to pursue novel therapeutic candidates based on exceptionally promising and innovative research.”
Peloton’s lead candidate is PT2977, a novel oral HIF-2α inhibitor in late-stage development for renal cell carcinoma.
John Josey, Peloton’s CEO, added: “We are proud to have advanced PT2977 to this stage of development and believe that Merck is well suited to build upon the progress our company has made.”
Peloton shareholders will be eligible to receive a further $1.15 billion if the future regulatory and sales milestones for certain candidates are achieved.
In February, Merck said it would acquire immunotherapy company Immune Design for $300 million, to strengthen its capabilities in vaccine development for infectious diseases and cancer.
One year before, Merck announced plans to build its immuno-oncology pipeline with a nearly $400 million acquisition of Australian drugmaker Viralytics.
Did you enjoy reading this story? Sign up to our free newsletters and get stories like this sent straight to your inbox.