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RAHWAY, NJ, USA I December 20, 2024 I Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced the closing of the exclusive global license agreement for LM-299, a novel investigational PD-1/VEGF bispecific antibody, from LaNova Medicines Ltd. As previously announced , Merck will develop, manufacture and commercialize LM-299. Merck will record a pre-tax charge relating to the upfront payment of $588 million, or approximately $0.18 per share, in the company’s fourth quarter 2024 GAAP and non-GAAP results. LaNova is also eligible to receive up to $2.7 billion in milestone payments associated with the technology transfer, development, regulatory approval and commercialization of LM-299 across multiple indications, including $300 million upon technology transfer anticipated to be completed in 2025. About LM-299 LM-299 is an investigational bispecific antibody targeting both programmed cell death protein-1 (PD-1) and vascular endothelial growth factor (VEGF). This innovative therapeutic approach is designed to inhibit both PD-1/PD-L1 and VEGF/VEGFR receptor signaling pathways releasing a key immune checkpoint while also inhibiting the production of new blood vessels (angiogenesis). LM-299 has a differentiated molecular design, comprising an anti-VEGF antibody linked to two C-terminal single domain anti-PD-1 antibodies. A Phase 1 clinical trial for LM-299 is currently enrolling patients in China. About Merck At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit www.merck.com and connect with us on X (formerly Twitter) , Facebook , Instagram , YouTube and LinkedIn . SOURCE: Merck

December 20, 2024 6:45 am ET RAHWAY, N.J.--(BUSINESS WIRE)-- Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced the closing of the exclusive global license agreement for LM-299, a novel investigational PD-1/VEGF bispecific antibody, from LaNova Medicines Ltd. As previously announced , Merck will develop, manufacture and commercialize LM-299. Merck will record a pre-tax charge relating to the upfront payment of $588 million, or approximately $0.18 per share, in the company’s fourth quarter 2024 GAAP and non-GAAP results. LaNova is also eligible to receive up to $2.7 billion in milestone payments associated with the technology transfer, development, regulatory approval and commercialization of LM-299 across multiple indications, including $300 million upon technology transfer anticipated to be completed in 2025. About LM-299 LM-299 is an investigational bispecific antibody targeting both programmed cell death protein-1 (PD-1) and vascular endothelial growth factor (VEGF). This innovative therapeutic approach is designed to inhibit both PD-1/PD-L1 and VEGF/VEGFR receptor signaling pathways releasing a key immune checkpoint while also inhibiting the production of new blood vessels (angiogenesis). LM-299 has a differentiated molecular design, comprising an anti-VEGF antibody linked to two C-terminal single domain anti-PD-1 antibodies. A Phase 1 clinical trial for LM-299 is currently enrolling patients in China. About Merck At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit www.merck.com and connect with us on X (formerly Twitter) , Facebook , Instagram , YouTube and LinkedIn . Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA This news release of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. There can be no guarantees with respect to pipeline candidates that the candidates will receive the necessary regulatory approvals or that they will prove to be commercially successful. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements. Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site ( www.sec.gov ). Merck Media Contacts: Robert Josephson (203) 914-2372 Justine Moore (347) 281-3754 Merck Investor Contacts: Peter Dannenbaum (732) 594-1579 Steven Graziano (732) 594-1583 Source: Merck & Co., Inc.

David Epstein has retired three times. And he quickly went to work when he got back in the saddle earlier this fall as CEO and chair of Ottimo Pharma, a preclinical biotech trying to take a unique twist on one of the oncology field’s buzziest areas. About two weeks before Ottimo emerged from stealth in late October, Epstein and team started corralling investors for a Series A. Now, just two months after that initial sprint for capital, they’ve stapled together a hefty $140 million Series A co-led by OrbiMed, Avoro Capital and Samsara BioCapital. “I even had someone ping me yesterday still trying to get in, but obviously there’s no more room,” Epstein said in an interview with Endpoints News on Dec. 13. The cash infusion will likely take Ottimo through early 2027, the CEO said. Ottimo plans to file an IND for its bifunctional PD-1xVEGFR2 antibody in late 2025. The biotech will study the antibody, codenamed jankistomig, in about 250 to 300 solid tumor patients in a multi-pronged Phase 1/2a study, Epstein said. In addition to monotherapy, Ottimo will explore combinations with chemotherapies and antibody-drug conjugates. Epstein knows a lot about ADCs — another hot area in oncology — thanks to his leadership roles at pioneering company Seagen, which he led to a $43 billion exit to Pfizer last year. The PD-1xVEGF space has garnered outsized attention from clinicians, investors and pharma acquirers ever since Summit Therapeutics and partner Akeso said in May that their experimental medicine topped Merck’s megablockbuster Keytruda. In November, BioNTech bought out its China partner Biotheus, and a day later, Merck licensed a similar drug from Shanghai-based LaNova. “The bispecifics are going to expand the market. Places like triple negative breast cancer — where IO drugs are not really active, often not the standard of care — all of a sudden you have a drug that’s dramatically improving progression-free survival,” Epstein said, referring to data last week on BioNTech and Biotheus’ candidate BNT327. But Ottimo isn’t developing a bispecific. It’s focused on a bifunctional antibody, which Epstein said puts it in a different class than the “at least half a dozen ‘me toos'” in development behind Summit and Akeso’s ivonescimab. “Because of the way we bind,” Epstein said, “regardless of how high the VEGF levels are in the cancer patient, we’re going to continue to work, and that’s not necessarily the case for the other drugs. “We’re a bifunctional antibody, so either arm of our antibody can bind either PD1 or VEGFR2,” Epstein said. He said it could lead to more targeting of the tumor and less systemic toxicity: “We’re going to be first in class.” Ottimo’s molecule was developed by Jonny Finlay, who had the idea in 2019 and took it to European investment firm Medicxi to get the R&D ball rolling, Epstein said. “He designed a really, really good drug,” the CEO said. The biotech said it will explore both IV and under-the-skin formulations. Epstein said he doesn’t see any similar bifunctionals in development. But that could soon change. “They’re actually hard to do, but in today’s world, one of the things that’s changed is people make copies of things pretty darn quick, so I would not be shocked if at some point we see some other bifunctionals,” Epstein said. Joining Epstein on Ottimo’s board are OrbiMed’s Peter Thompson, Avoro’s Mark Chin and Samsara’s Srini Akkaraju. In addition to those three firms, Ottimo’s investor base also includes Medicxi, RTW Investments, Decheng Capital , Janus Henderson, JP Morgan Life Sciences Private Capital and Invus. Before Epstein retires for a fourth time, he might forge another M&A exit to pharma. Ottimo, with a completely virtual workforce in London and the US, will likely take jankistomig through those Phase 1/2a studies and then seek external help. “The right answer to have sufficient muscle to do multiple large Phase 3 trials in parallel around the world and then commercialize, would be with a pharma, either a partner or someone that acquires us,” he said.