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2/5/2019, 1:54 PM (Source: TeleTrader)
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GSK, Merck enter strategic alliance worth up to €3.7B

GlaxoSmithKline plc (GSK) and Merck Group entered a global strategic alliance to jointly develop and commercialize M7824, a fusion protein developed to treat advanced cancers, with the potential value of the deal up to €3.7 billion.

As a part of the agreement, Merck will receive an upfront payment of €300 million and will be eligible for potential payments of up to €500 million depending on the success of the protein development. Further, the company will be entitled to premiums of up to €2.9 billion upon successfully achieving "future approval and commercial milestones."

"Despite recent medical advances, many patients with difficult-to-treat cancers don’t currently benefit from immuno-oncology therapies leaving them with limited treatment options. M7824 brings together two different biological functions in a single molecule and we have observed encouraging clinical results in treating certain cancer patients, particularly those people with non-small cell lung cancer. I’m excited by the potential impact this first-in-class immunotherapy could have on the lives of cancer patients," Hal Barron, chief scientific officer of GSK said.

Breaking the News / MD