Merck Signs $3.3 Billion Deal with China’s LaNova for Cancer Drug Development

Nov 14 – Merck has entered into a significant partnership with China-based biotech company LaNova Medicines, agreeing to a deal valued at up to $3.3 billion for an early-stage cancer drug.

The agreement will see Merck take over the development of LaNova’s LM-299, a drug designed to target PD-1, a protein that blocks the immune system’s ability to fight cancer. LM-299 also targets VEGF, another protein linked to tumor growth.

Under the terms of the deal, Merck will pay LaNova an upfront fee of $588 million, with the potential for LaNova to earn up to $2.7 billion in milestone payments as the drug progresses through development stages.

This move follows a breakthrough earlier this year when Summit Therapeutics’ cancer therapy, ivonescimab, demonstrated superior results compared to Merck’s popular Keytruda in a late-stage trial in China.

Merck’s latest partnership reflects growing interest in therapies that target PD-1 and VEGF proteins, a class of cancer treatments that has become increasingly attractive to big pharmaceutical companies.

In a related development, BioNTech, the German biotech firm, also announced plans to acquire China’s Biotheus to strengthen its position in this promising drug category. (By Reuters)