Merck signs $5.5 billion deal with Daiichi for cancer therapy development
By David Dolan and Kanjyik Ghosh
TOKYO (Reuters) -Drugmaker Merck will pay Daiichi Sankyo $5.5 billion to jointly develop three of its candidate cancer drugs, they said, a deal that could eventually be worth up to $22 billion to the Japanese firm depending on the success of the cell-targeting therapies.
The announcement sent shares of Daiichi Sankyo up 12% in early trading in Tokyo on Friday, raising expectations for its cancer drug pipeline.
The Japanese company is targeting at least 900 billion yen ($6.0 billion) of revenue from its oncology business in the fiscal year ending March 31, 2026, which would represent about a five-fold increase over a three-year period.
The three drug candidates to be developed with Merck belong to the class known as antibody drug conjugates (ADC) and are in various stages of clinical development for the treatment of multiple solid cancer tumors. Unlike conventional chemotherapy, which can kill healthy cells, ADCs are designed to target cancer cells, potentially reducing damage to normal cells.
The candidates — patritumab deruxtecan, ifinatamab deruxtecan and raludotatug deruxtecan — have «multi-billion dollar worldwide commercial revenue potential for each company» by the mid-2030s, the two companies said.
The companies will jointly and potentially commercialise the drug candidates worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights, they said. Daiichi Sankyo will be solely responsible for manufacturing and supply.
Merck will pay Daiichi Sankyo $4 billion upfront in addition to $1.5 billion in continuation payments over the next two years. Merck may make additional payments of up to $16.5 billion contingent on future sales milestones, or $5.5 billion for each
Read more on investing.com
