Merck to Acquire CN201 Therapy from Curon Biopharmaceutical

RAHWAY, N.J.--Merck (NYSE: MRK), referred to as MSD outside of the United States and Canada, and the privately-held biotechnology company Curon Biopharmaceutical (Curon) have revealed a definitive agreement. Under this arrangement, Merck, via a subsidiary, will acquire CN201, a novel investigational bispecific antibody in the clinical stage aimed at treating B-cell associated diseases.

Dr. Dean Y. Li, president of Merck Research Laboratories, stated, “We continue to identify opportunities to expand and diversify our pipeline. Early clinical data have provided robust evidence for the potential of CN201 to target and deplete circulating and tissue B cells with the potential to treat a range of malignant and autoimmune diseases.”

According to the agreement, Merck will secure full global rights to CN201 by making an upfront payment of $700 million in cash. Curon might also receive additional milestone payments of up to $600 million, contingent upon the development and regulatory approval of CN201.

Currently, CN201 is undergoing evaluation in Phase 1 and Phase 1b/2 clinical trials. These trials focus on treating patients with either relapsed or refractory non-Hodgkin’s lymphoma (NHL) or relapsed or refractory B-cell acute lymphocytic leukemia (ALL). Preliminary findings indicate that CN201 could be effective in reducing B-cell populations in patients with these conditions, showcasing both a significant and sustained impact. Merck aims to investigate CN201 further as a treatment for B-cell malignancies and explore its potential as a novel treatment option for autoimmune diseases.

Zhihong Chen, president and chief executive officer of Curon, commented, “This agreement reflects the drive and dedication of the Curon team. 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.”

The transaction's completion is contingent upon approval under the Hart-Scott-Rodino Antitrust Improvements Act along with other standard conditions. The deal is projected to close in the third quarter of 2024, and Merck will classify it as an asset acquisition. The company anticipates recording a pre-tax charge of roughly $750 million, or approximately $0.28 per share, to be included in non-GAAP results for the quarter in which the transaction is finalized. Merck typically updates its financial outlook quarterly and will do so following the report of third-quarter 2024 results.

Hogan Lovells is acting as Merck’s legal advisor for this transaction, while Centerview Partners LLC served as Curon’s financial advisor, and Goodwin Procter LLP as its legal advisor.

CN201 is a unique CD3xCD19-targeting T-cell-engager bispecific antibody designed to eliminate B cells via T cells. It is being tested in Phase 1 and Phase 1b/2 clinical trials to treat relapsed or refractory non-Hodgkin’s lymphoma and relapsed or refractory acute lymphocytic leukemia.

Curon Biopharmaceutical focuses on developing bispecific antibodies and antibody-drug conjugates for cancer treatment, originating from both internal research and external collaborations. The company operates in Australia, Hong Kong, and Shanghai, China.

Merck, also known as MSD outside the United States and Canada, aims to use advanced science to save and improve lives globally. For over 130 years, Merck has been a beacon of hope through the development of essential medicines and vaccines. The company is committed to being a leading research-intensive biopharmaceutical enterprise. With a diverse and inclusive global workforce, Merck strives to operate responsibly and ensure a sustainable, healthy future for all communities.