- Merck recently announced it is buying OncoImmune for $425 million in cash. These are the details about the deal.
Recently Merck & Co., Inc. (NYSE: MRK) announced it is buying OncoImmune for $425 million in cash. Plus OncoImmune shareholders will be eligible to receive sales-based payments and payments contingent on the successful achievement of certain regulatory milestones.
OncoImmune had recently revealed positive top-line findings from an interim efficacy analysis of a Phase 3 study evaluating its lead therapeutic candidate CD24Fc for the treatment of patients with severe and critical COVID-19.
The interim analysis of data from 203 participants (75% of the planned enrollment) reported by OncoImmune had indicated that patients with severe or critical COVID-19 treated with a single dose of CD24Fc showed a 60% higher probability of improvement in clinical status (as defined by the protocol) compared to placebo. And the risk of death or respiratory failure was reduced by more than 50%. The detailed results will be submitted for publication in a peer-reviewed medical journal.
As part of the agreement — prior to the completion of the acquisition — OncoImmune will spin-out certain rights and assets unrelated to the CD24Fc program to a new entity to be owned by the existing shareholders of OncoImmune. And in connection with the closing of the acquisition, Merck will invest $50 million and become a minority shareholder in the new entity.
The closing of the acquisition is expected before the end of 2020.
OncoImmune was represented by Goodwin Procter LLP as legal advisor and Guggenheim Securities as financial advisor.
KEY QUOTES:
“Meaningful new therapeutic options are desperately needed for possibly millions of people around the world who will develop severe or critical COVID-19 disease. Recent clinical investigations support the view that CD24Fc may provide benefit beyond standard of care therapy for COVID-19 patients requiring oxygen support, and hence will represent an important addition to the Merck pipeline of investigational medicines and vaccines designed to address the COVID-19 pandemic.”
— Dr. Roger M. Perlmutter, President Merck Research Laboratories
“Outstanding work by the OncoImmune team has provided compelling evidence regarding the use of CD24Fc in patients with severe and critical COVID-19 in our Phase 3 Trial. We look forward to working with the scientists and manufacturing engineers at Merck as well as regulators as we seek to accelerate the global development of this potentially important therapy.”
— Yang Liu, PhD, Co-founder and Chief Executive Officer of OncoImmune
