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Merck to invest in Seattle Genetics
Posted on Monday, 14 September 2020 13:31
Merck has announced plans to invest in Seattle Genetics as part of two new strategic oncology collaborations and after the target sold its stake in Immunomedics in a deal worth USD 21.00 billion.

The companies have agreed to develop and commercialise ladiratuzumab vedotin, an investigational antibody-drug conjugate targeting LIV-1, which currently is in phase 2 clinical trials for breast cancer and other solid tumors.

By joining forces on this project, it allows the groups to use the product as monotherapy in collaboration with Merck’s anti-PD-1 therapy Keytruda in triple-negative breast cancer, hormone receptor-positive breast cancer and other LIV-1 expressing solid tumors.

Seattle Genetics will receive a USD 600.00 million upfront payment and Merck will make a USD 1.00 billion equity investment in exchange for 5.00 million shares of common stock at a price of USD 200.00 per item of stock.

In addition, the group is eligible for process-dependent milestone payments of up to USD 2.60 billion, including USD 850.00 million in development milestone and USD 1.75 billion in sales

Separately, Seattle Genetics has granted Merck an exclusive license to commercialise TUKYSA, a small molecule tyrosine kinase inhibitor for the treatment of HER2-positive cancers, in Asia, the Middle East and Latin America and other regions outside of North America and Europe.

The target will also receive USD 125.00 million from the buyer as an upfront payment and is eligible for progress-dependent milestones of up to USD 65.00 million.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 1,305 deals targeting pharmaceutical preparation manufacturing companies announced worldwide in 2020 to date.

In the largest of these, Sanofi completed a minority stake sale in Regeneration Pharmaceuticals in a deal worth USD 6.70 billion.

Other targets included Yunnan Baiyao Group, Bayer, Genmab and Horizon Therapeutics.

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