Merck Strikes $1.3 Billion Deal to Acquire Curon’s B-Cell Therapy Drug

Merck, known as MSD outside of the United States and Canada, announced on Friday that it will acquire full global rights to Curon Biopharmaceutical’s CN201, a next-generation cell therapy drug. The deal, valued at up to $1.3 billion, positions Merck to expand its portfolio in innovative treatments, offering potential applications in treating B-cell malignancies and autoimmune diseases.

Merck Secures Global Rights to CN201 with $700 Million Upfront Payment, Potential for $600 Million in Milestones

Merck, through a subsidiary, will pay $700 million upfront to secure full global rights to CN201 under the deal terms. Additionally, Curon could receive up to $600 million in milestone payments for achieving regulatory and developmental targets.

CN201, an investigational bispecific antibody in the clinical stage, has potential applications in B-cell malignancies and autoimmune diseases. Currently, it is undergoing evaluation in Phase 1 and Phase 1b/2 clinical trials for relapsed or refractory non-Hodgkin’s lymphoma (NHL) and B-cell acute lymphocytic leukemia (ALL). 

Abnormal B cells can lead to various diseases, including autoimmune conditions and cancers. These diseases encompass lupus, rheumatoid arthritis, multiple sclerosis, and Type 1 diabetes.

In the context of CN201, preliminary data shows promising potential for patients with relapsed or refractory B-cell hematologic malignancies. In this regard, CN201 may induce significant and sustained reductions in B-cell populations, offering hope for more effective treatments. 

Merck and Curon Finalize $1.3 Billion Deal for CN201, With Transaction Expected to Close in Q3

Dr. Dean Li, president of Merck Research Laboratories, stated, “Early clinical data have provided robust evidence for the potential of CN201 to target and deplete circulating and tissue B cells with the potential to treat a range of malignant and autoimmune diseases.”

Curon Biopharmaceutical, a clinical-stage company, develops bispecific antibodies and antibody-drug conjugates for cancer treatment through internal research and external collaborations. Based in the Cayman Islands, Curon operates in Australia, Hong Kong, and Shanghai, China.

Zhihong Chen, president and CEO of Curon, commented, “This agreement reflects the drive and dedication of the Curon team. As a pioneer in immuno-oncology, Merck is well positioned to build upon the work done to-date and investigate the wide-ranging, first-in-class potential of CN201.”

The deal is expected to close in the third quarter of this year, pending approval under the Hart-Scott-Rodino Antitrust Improvements Act and other standard conditions. Merck plans to assess CN201 for treating B-cell malignancies and will also explore its potential as a novel, scalable option for autoimmune diseases.

Current Advances in Merck’s Key Therapies for Cancer, Pulmonary Arterial Hypertension, and Pneumococcal Disease

In recent developments for Q2 2024, Merck & Co., Inc. reported a 7% rise in global sales, reaching $16.112 billion. The company’s growth was significantly driven by KEYTRUDA (pembrolizumab), an immune checkpoint inhibitor used primarily to treat various types of cancer, which saw a notable rise in sales due to high demand in both early-stage and established therapeutic areas. Additionally, sales of the vaccine GARDASIL/GARDASIL 9 increased modestly. Although GARDASIL faced challenges in China, Merck has updated its full-year sales outlook and revised its EPS forecast to account for recent acquisitions and currency fluctuations.

Meanwhile, Merck achieved significant milestones in drug development, notably launching WINREVAIR (sotatercept) for pulmonary arterial hypertension (PAH). This drug has seen success in both the U.S. and European markets. Moreover, the FDA approved CAPVAXIVE (pneumococcal 21-valent conjugate vaccine) for preventing invasive pneumococcal disease and pneumonia in adults. WINREVAIR, now available to over 1,000 patients in the U.S., represents a major advancement in PAH treatment. Furthermore, CAPVAXIVE’s approval, backed by CDC data, positions it as a key option for preventing pneumococcal disease.

In addition, Merck received FDA approval for KEYTRUDA in combination with chemotherapy and as a single agent for endometrial carcinoma, marking its 40th indication in the U.S. The company also presented new data on its oncology pipeline at the ASCO Annual Meeting. Moreover, Merck introduced a 12-month injectable formulation of BRAVECTO for dogs in Europe and completed strategic acquisitions, including Elanco Animal Health’s aqua business and Eyebiotech Limited. Lastly, Merck converted its co-development agreement with Orion Corporation into an exclusive global license for opevesostat (MK-5684/ODM-208).

Author

Bernice Lottering