Merck & Co. invests $1.3B in Curon's bispecific

To broaden its oncology portfolio, Merck & Co. announced on Friday a definitive agreement to acquire CN201, a CD3xCD19 bispecific antibody, from Shanghai-based Curon Biopharmaceutical. This deal, potentially valued at up to $1.3 billion, represents Merck's ongoing efforts to diversify its pipeline beyond its flagship PD-1-targeting immunotherapy, Keytruda (pembrolizumab). Merck will make an upfront payment of $700 million in cash for full global rights to CN201, with Curon eligible for up to $600 million in milestone payments tied to the asset's development and regulatory approval.

CN201 is currently in Phase I and Phase Ib/II clinical trials for the treatment of relapsed or refractory non-Hodgkin's lymphoma (NHL) and relapsed or refractory B-cell acute lymphocytic leukemia (ALL), respectively. This bispecific antibody is designed to target B cells for elimination by T cells. "Early clinical data have provided robust evidence for the potential of CN201 to target and deplete circulating and tissue B cells, which could treat a range of malignant and autoimmune diseases," stated Dean Li, president of Merck Research Laboratories.

Merck intends to explore CN201's potential in B-cell malignancies and evaluate its efficacy as a novel, scalable option for treating autoimmune diseases. This dual strategy could create new revenue streams for Merck and reduce its reliance on Keytruda. The transaction is expected to close in the third quarter of this year.

Merck has been active in expanding its portfolio through various acquisitions this year. These include the purchase of antibody-drug conjugate startup Abceutics for up to $208 million, Harpoon Therapeutics for approximately $680 million, which brought a slate of T-cell engaging immunotherapy programs, and ophthalmic drugmaker EyeBio for up to $3 billion.

Curon Biopharmaceutical, founded in 2018, secured $150 million in Series A funding led by 6 Dimensions Capital, Boyu Capital, and Temasek. Curon's CEO, Zhihong Chen, commented on the recent deal, stating that “as a pioneer in immuno-oncology, Merck is well-positioned to build upon the work done to date and investigate the wide-ranging, first-in-class potential of CN201.”