RAHWAY, N.J. - Merck (NS:PROR) & Co., Inc. (NYSE:MRK) has finalized an exclusive global licensing agreement with LaNova Medicines Ltd. for LM-299, an investigational PD-1/VEGF bispecific antibody, aimed at cancer treatment. The agreement, which includes the development, manufacture, and commercialization of LM-299, was completed today.
As part of the financial terms, Merck will take a pre-tax charge of $588 million, roughly $0.18 per share, in its fourth quarter 2024 results, impacting both GAAP and non-GAAP earnings. Additionally, LaNova could receive up to $2.7 billion in milestone payments subject to technology transfer, development, regulatory approvals, and commercialization of LM-299. The technology transfer is expected to conclude in 2025, triggering a $300 million payment. According to InvestingPro analysis, Merck currently trades below its Fair Value, suggesting the market may not fully reflect the company's growth potential and strong financial health rating.
LM-299 is currently in a Phase 1 clinical trial in China. This bispecific antibody is designed to simultaneously inhibit the PD-1/PD-L1 and VEGF/VEGFR signaling pathways. By blocking these pathways, LM-299 aims to release a key immune checkpoint and prevent angiogenesis, the formation of new blood vessels that can supply tumors.
Merck, a company with a history spanning over 130 years, is known for its commitment to using leading-edge science to improve lives globally. With annual revenue of $63.17 billion and a strong track record of 54 consecutive years of dividend payments, the acquisition of LM-299 aligns with Merck's aspiration to lead in the research-intensive biopharmaceutical industry and to bring innovative health solutions to the market. For detailed insights into Merck's financial health and growth prospects, including 12 additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
The company cautions that the statements regarding LM-299 are forward-looking and involve risks and uncertainties. There are no guarantees that LM-299 will receive necessary regulatory approvals or become commercially successful. Factors that could affect the outcome include industry conditions, competition, economic factors, regulatory and healthcare legislation, cost containment trends, technological advances, product development challenges, market predictions, manufacturing issues, and patent protections.
This news article is based on a press release statement from Merck & Co., Inc.
In other recent news, Merck & Co., Inc. saw adjustments in analyst ratings and made significant strides in its business operations. BMO Capital Markets downgraded Merck's stock from Outperform to Market Perform, citing concerns over the performance of its Gardasil franchise in China and potential challenges for its cancer drug Keytruda. Despite these concerns, Merck maintains strong fundamentals with $63.17 billion in revenue and a 6.51% revenue growth over the last twelve months.
In terms of mergers and acquisitions, Merck entered the obesity treatment market by in-licensing a preclinical oral small molecule, GLP-1RA HS-10535, from Hansoh Pharma. This deal involved an upfront payment of $112 million, with potential milestone payments reaching up to $1.9 billion.
Merck also announced positive results from two pivotal Phase 3 trials for its investigational HIV-1 treatment regimen, doravirine/islatravir (DOR/ISL), meeting primary efficacy endpoints. This development adds to the company's robust research initiatives and strong financial health.
Lastly, Merck reported a 4% increase in third-quarter revenue for 2024, reaching $16.7 billion, driven by strong sales of its cancer drug KEYTRUDA and the introduction of WINREVAIR. These are the recent developments from Merck's operations.
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