Merck Signs $3.3 Billion Cancer Drug Deal With China-Based LaNova

Merck announced a $3.3 billion deal to license an early-stage cancer drug from China-based LaNova Medicines, two months after a competing therapy outperformed Merck’s blockbuster drug Keytruda in a trial, Leroy Leo reported for Reuters.

Under the deal, Merck will pay $588 million upfront, with LaNova eligible for up to $2.7 billion in milestone payments. I Photo: Merck & Co.

The agreement grants Merck the rights to develop LM-299, a drug candidate targeting two cancer-related proteins, PD-1 and VEGF. PD-1 inhibits the immune system from attacking cancer cells, while excessive VEGF levels can promote tumor growth.

Under the deal, Merck will pay $588 million upfront, with LaNova eligible for up to $2.7 billion in milestone payments.

Interest in this class of bi-specific drugs is growing. In September, Summit Therapeutics and its partner Akeso released data showing superior survival rates for patients treated with their drug, ivonescimab, compared to Keytruda.

Similarly, German firm BioNTech announced its acquisition of China-based Biotheus to access its own PD-1 and VEGF-targeting bi-specific antibody.