M&A

Merck (known as MSD outside the US and Canada) have announced that they have entered into an agreement with private biotechnology company Curon Biopharmaceuticals to acquire CN201, a novel investigational clinical-stage bispecific antibody for the treatment of B-cell associated diseases.

Through a subsidiary, Merck have agreed on full global rights to CN201 for an upfront payment of $700m in cash. In association with the regulatory and developmental approvals of CN201, Curon are eligible to receive up to $600m.

Dr Dean Y Li, president of MSD Research Laboratories commented: “Early clinical data have provided robust evidence for the potential of CN201 to target and deplete circulating and tissue Bcells with the potential to treat a range of malignant and autoimmune diseases.”

“This agreement reflects the drive and dedication of the Curon team,” said Zhihong Chen, president and chief executive officer for Curon.

CN201 is currently being evaluated in phase 1 and phase 1b/2 clinical trials for the treatment of patients with relapsed or refractory non-Hodgkin’s lymphoma (NHL) and relapsed or refractory B-cell acute lymphocytic leukemia (ALL), respectively.

Merck plans to evaluate CN201 as a treatment for B-cell malignancies as well as investigate its potential to provide a novel, scalable option for the treatment of autoimmune diseases.

Preliminary data suggest CN201 has activity in patients with relapsed or refractory B-cell hematologic malignancies with the potential to induce significant and sustained reductions in B-cell populations, and is well tolerated.

The transaction is expected to close in the third quarter of this year, 2024. Merck has expected to record a pre-tax charge of approximately $750m, to reflect the upfront payment and other costs.