Merck, known as MSD outside the US and Canada, has signed a deal worth up to $1.3bn with Curon Biopharmaceutical to acquire the latter’s CN201, a B-cell associated disease therapy.
Curon Biopharmaceutical is a privately held biotech company. Its CN201 is a clinical-stage bispecific antibody.
CN201 is currently undergoing evaluation in Phase 1 and Phase 1b/2 clinical trials for treating relapsed or refractory non-Hodgkin’s lymphoma (NHL) and relapsed or refractory B-cell acute lymphoblastic leukaemia (ALL), respectively.
Preliminary data showed that CN201 is active in patients with these types of B-cell hematologic malignancies and is well tolerated, potentially leading to significant and sustained reductions in B-cell populations.
US-based Merck plans to further assess CN201 for treating B-cell malignancies and explore its potential as a scalable treatment option for autoimmune diseases.
Merck Research Laboratories president Dean Y. Li said: “We continue to identify opportunities to expand and diversify our pipeline.
“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.”
As per the terms of the agreement, Merck, through a subsidiary, will acquire full global rights to CN201 for an upfront payment of $700m in cash.
Additionally, Curon Biopharmaceutical is entitled to receive up to $600m in milestone payments tied to the development and regulatory approval of CN201.
Curon Biopharmaceutical president and CEO Zhihong Chen said: “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 closing of the proposed transaction is anticipated in Q3 2024, subject to standard approval and other customary conditions. It will be recorded as an asset acquisition.
Hogan Lovells is serving as Merck’s legal advisor for this transaction, while Centerview Partners acted as financial advisor to the biotech company. Goodwin Procter is providing legal counsel to Curon Biopharmaceutical.
The latest development comes after Merck and Japan-based Daiichi Sankyo expanded their collaboration to include Merck’s MK-6070 for joint development and commercialisation.
