Merck Daiichi Sankyo Expand Cancer Drug Deal Nysemrk

Merck and Daiichi Sankyo Expand Cancer Drug Deal

Drugmaker Merck to Pay Daiichi Sankyo $5.5 Billion

Three Cancer Drugs to Be Jointly Developed and Commercialized

RAHWAY, N.J. and TOKYO, Oct. 19, 2024 - Drugmaker Merck & Co. (MRK.N) has agreed to pay Daiichi Sankyo Co. (4568.T) $5.5 billion to jointly develop and commercialize three cancer drugs, the companies announced on Friday. The deal expands on an existing partnership between the two companies, which was first announced in 2018. Under the new agreement, Merck will pay Daiichi Sankyo $2.5 billion upfront, with an additional $3 billion in potential milestone payments. The three drugs included in the deal are: * **DS-8201:** A monoclonal antibody that targets the HER2 protein, which is overexpressed in some types of cancer. * **DS-1062:** A small molecule that inhibits the WEE1 kinase, which is involved in cell cycle regulation. * **DS-3201:** A small molecule that inhibits the MET receptor tyrosine kinase, which is involved in tumor growth and metastasis. The three drugs are all currently in clinical development. Merck and Daiichi Sankyo plan to jointly develop and commercialize the drugs in all major markets worldwide. "This is a significant expansion of our partnership with Daiichi Sankyo," said Roger M. Perlmutter, president of Merck Research Laboratories. "The three drugs included in this deal have the potential to make a meaningful difference in the lives of patients with cancer." "We are excited to continue our partnership with Merck," said Hiroaki Kiyama, president and CEO of Daiichi Sankyo. "We believe that this deal will accelerate the development and commercialization of our promising cancer drugs."