Merck Secures Global License for LM-299, an Investigational Anti-PD-1/VEGF Antibody from LaNova

Merck, known as MSD outside the United States and Canada, along with LaNova Medicines Ltd. (LaNova), a clinical-stage biotechnology firm, has announced a global licensing agreement. This agreement grants Merck exclusive rights to develop, manufacture, and commercialize LM-299, a new investigational PD-1/VEGF bispecific antibody developed by LaNova.

Dr. Dean Y. Li, president of Merck Research Laboratories, highlighted the importance of this agreement in enhancing Merck's oncology pipeline. Dr. Li emphasized Merck's commitment to advancing LM-299 rapidly and effectively for patients who need it.

As part of the agreement, LaNova is set to receive an upfront payment of $588 million from Merck. Additionally, LaNova could receive up to $2.7 billion in milestone payments related to the technology transfer, development, regulatory approval, and commercialization of LM-299 across different indications.

Dr. Crystal Qin, founder, chairwoman, and CEO of LaNova, praised her team for their dedication in creating LM-299. She reiterated LaNova's mission to advance its pipeline through internal R&D and external partnerships, aiming to benefit patients globally.

The transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other standard conditions. It is expected to be finalized in the fourth quarter of 2024. Merck plans to record a pre-tax charge relating to the $588 million payment upon closing, which will be included in both GAAP and non-GAAP results for the quarter in which the transaction closes. The impact on EPS will be disclosed at that time.

LM-299 is an investigational bispecific antibody that targets both programmed cell death protein-1 (PD-1) and vascular endothelial growth factor (VEGF). This novel therapeutic approach aims to inhibit both the PD-1/PD-L1 and VEGF/VEGFR signaling pathways, which helps release a crucial immune checkpoint while also inhibiting the production of new blood vessels (angiogenesis). LM-299 has a unique molecular design, consisting of an anti-VEGF antibody linked to two C-terminal single domain anti-PD-1 antibodies. Currently, a Phase 1 clinical trial for LM-299 is enrolling patients in China.

LaNova Medicines Ltd., founded in September 2019 and headquartered in Shanghai, is a privately held biotechnology company. With the mission of "Care for life, Dedicate to innovation," the company focuses on discovering novel biologic therapies in ADC and Immuno-Oncology. LaNova is committed to developing best-in-class or first-in-class therapies that address significant unmet medical needs.

LaNova's portfolio is supported by a leading R&D engine, which includes three distinct platforms: a proprietary antibody platform that can generate antibodies against various targets, including multi-transmembrane proteins and GPCRs; a next-generation ADC platform that uses proprietary payload and linker technologies to create highly differentiated ADCs; and a modular 4-1BB-based T-cell engager (TCE) platform for developing bispecific antibodies targeting distinct tumor-associated antigens (TAAs).

Merck, known as MSD outside the United States and Canada, has been dedicated to using science to save and improve lives for over 130 years. The company aims to be the premier research-intensive biopharmaceutical organization globally, focusing on developing innovative health solutions for the prevention and treatment of diseases in humans and animals. Merck supports a diverse and inclusive global workforce and operates responsibly to ensure a safe, sustainable, and healthy future for all communities.

The collaboration between Merck and LaNova marks a significant step in advancing cancer treatment options and exemplifies both companies' dedication to innovation and patient care.