Merck, also known as MSD outside the US and Canada, has secured the global licence of China-based biotechnology company LaNova Medicines’ investigational drug candidate LM-299 for up to $3.2bn.
Under the terms of the agreement, Merck has been granted an exclusive licence to manufacture and commercialise LM-299 worldwide.
LaNova will receive an upfront payment of $588m and is also eligible for additional milestone payments totalling up to $2.7bn.
The milestone payments are contingent on technology transfer, development, regulatory approval, and marketing of LM-299 across multiple indications.
The transaction is expected to be completed in the fourth quarter of 2024, subject to approval under the Hart-Scott-Rodino Antitrust Act and other customary conditions.
Merck Research Laboratories president Dean Li said: “At Merck, we continue to assemble a strong and diversified oncology pipeline spanning differentiated mechanisms and multiple modalities.
“This agreement adds to Merck’s growing oncology pipeline and we look forward to advancing LM-299 with speed and rigour for patients in need.”
Established in 2019, LaNova is a China-based biotech company developing advanced biological therapies in the fields of Antibody-Drug Conjugates (ADC) and Immuno-Oncology.
The company developed its portfolio based on its R&D engine, which comprises an Antibody Platform, a next-generation ADC Platform, and a T-cell Engager (TCE) Platform.
Its lead candidate LM-299 is a bispecific antibody that targets both programmed cell death protein-1 (PD-1) and vascular endothelial growth factor (VEGF).
The drug’s dual approach, targeting PD-1 and VEGF pathways, aims to inhibit immune checkpoints and angiogenesis simultaneously.
Currently, LaNova is enrolling patients into the Phase 1 clinical trials in China, to evaluate the safety and effectiveness of LM-299.
LaNova founder, chairwoman and CEO Crystal Qin said: “This agreement with Merck is a strong testament to the hard work of LaNova’s talented team of scientists who created LM-299.
“Through internal R&D innovation and strategic external partnerships, LaNova is committed to advancing its pipeline to benefit patients worldwide.”
