Daiichi Sankyo, Merck ink $22-billion cancer drug deal
Merck & Co. agreed to buy the rights to sell Daiichi Sankyo Co.'s three experimental cancer drugs as it looks to sustain its dominance in cancer treatment.
Daiichi rose as much as 18% on Friday, the biggest intraday jump since 2005, after Merck agreed to pay $4 billion upfront and as much as $22 billion to develop and market three cancer drug candidates.
One them is them slated to seek US approval by March 2024, the company said in a statement. Daiichi will retain the rights for these drugs in Japan.
The deal adds promising drug candidates to Merck's oncology portfolio, as its bestselling cancer therapy Keytruda will see its patent expire later this decade. A treatment that harnesses patient's own immune system to fight cancer, Keytruda is also expected to enter US government drug price negotiations in 2028, when it's set to reach $33 billion in global sales, about 45% of Merck's revenue that year.
It also cements the Japanese drugmaker's lead in developing the latest type of cancer therapy known as antibody-drug conjugates, which attack cancer cells without damaging surrounding healthy ones.
Daiichi has already teamed up with AstraZeneca Plc to sell a similar drug called Enhertu to extend the lives of breast-cancer patients. Daiichi and Astra are also co-developing another candidate for lung and breast cancer. Enhertu is on track to generate more than $10 billion annually.
Daiichi has previously expressed interest in commercializing its own drugs in a bid to maximize profit.
