Merck & Co to buy $1bn stake in Seattle Genetics
Merck & Co is set to make a $1 billion investment in biotech company Seattle Genetics, as the companies collaborate to develop and sell Seattle Genetics’ cancer therapy, ladiratuzumab vedotin.
Announced Monday, September 14, the collaboration will assess ladiratuzumab vedotin in combination with Merck & Co’s drug Keytruda (pembrolizumab) in types of breast cancer and other solid tumours.
As part of the agreement, will also invest $1 billion to buy 5 million of shares of Seattle Genetics for $200 per share. Merck & Co will also pay $600 million, and Seattle Genetics will be eligible for progress-dependent milestone payments of up to $2.6 billion.
Ladiratuzumab vedotin is currently in phase 2 clinical trials for breast cancer and other solid tumours.
The deal builds on Merck & Co’s oncology portfolio, which was strengthened with the acquisition of biotech ArQule ( announced in December 2019).
Separately, Seattle Genetics has granted Merck & Co an exclusive licence to commercialise Tukysa (tucatinib), a small molecule tyrosine kinase inhibitor, for the treatment of HER2-positive cancers, in Asia, the Middle East and Latin America and other regions outside of the US, Canada and Europe.
Merck & Co will pay $125 million upfront, with Seattle Genetics eligible for progress-dependent milestones of up to $65 million.
Clay Siegall, president and CEO of Seattle Genetics, said: “Collaborating with Merck & Co on ladiratuzumab vedotin will allow us to accelerate and broaden its development programme in breast cancer and other solid tumours, including in combination with Merck’s Keytruda, while also positioning us to leverage our US and European commercial operations.”
Merck & Co’s announcement came just one day after news broke that Gilead Sciences would acquire biopharmaceutical company Immunomedics in a $21 billion deal, further strengthening its oncology expertise.
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