Daiichi Sankyo And Merck Ink $22 Billion Cancer Therapy Deal

Japanese pharmaceutical company Daiichi Sankyo Co. and its U.S. counterpart, Merck & Co. have announced a significant deal worth $22 billion.

Daiichi Sankyo will retain exclusive rights for the Japanese market and will assume responsibility for all aspects of manufacturing and supply. I Photo: Daiichi Sankyo

This deal involves the development and commercialization of three cancer therapies, as reported by Kyodo News.

These therapies, known as antibody-drug conjugates, are currently in various stages of clinical development and are anticipated to be effective in treating multiple types of solid tumors, including those found in the lungs and ovaries.

Unlike traditional chemotherapy, antibody-drug conjugates are designed to target tumor cells while sparing healthy cells.

As part of the agreement, Merck will make an upfront payment of $4 billion to Daiichi Sankyo, along with an additional deferred payment of $1.5 billion.

Furthermore, Merck will provide additional payments totaling up to $16.5 billion based on the drugs' success in sales. Both companies will jointly market these drugs worldwide. However, Daiichi Sankyo will retain exclusive rights for the Japanese market and will assume responsibility for all aspects of manufacturing and supply.

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