Sundry Photography/iStock Editorial via Getty Images Merck ( NYSE: MRK ) has agreed to acquire an investigational B-cell depletion therapy, CN201, from Shanghai-based biopharma company Curon Biopharmaceutical for an upfront payment of $700M in cash. CN201 is a clinical-stage bispecific antibody with potential applications in B-cell malignancies and autoimmune diseases. The drug is currently being evaluated in Phase 1 and Phase 1b/2 clinical trials for the treatment of relapsed or refractory non-Hodgkin’s lymphoma and relapsed or refractory B-cell acute lymphocytic leukemia, respectively.
Merck ( MRK ) will acquire full global rights to CN201 and incur a pre-tax charge of around $750M, reflecting the upfront payment, in the quarter that the transaction closes. The drugmaker plans to evaluate CN201 as a treatment for B-cell malignancies as well as investigate its potential to provide a novel, scalable option for the treatment of autoimmune diseases. The transaction is expected to close in the third quarter of 2024 and be accounted for as an asset acquisition.
Curon is also eligible to receive up to $600M in milestone payments associated with the development and regulatory approval of CN201. More on Merck Merck / Pfizer Earnings Summaries: Staying With Merck For Now, Pfizer's Cost-Cutting Will Help Margins Merck & Co., Inc.
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