Merck and Daiichi Sankyo recently announced a substantial partnership focused on the development and distribution of three antibody-drug conjugates (ADCs) designed to target solid tumors. The collaboration is anticipated to be a game-changer in the field of oncology.
The partnership, potentially valued at up to $22 billion, commences with an initial payment of $4 billion to Daiichi, followed by an additional $1.5 billion to be disbursed over the next two years. Moreover, there are prospects for future payments amounting to $16.5 billion, contingent on reaching specific sales milestones. Merck will shoulder 75% of the initial $2 billion research and development costs for raludotatug deruxtecan.
The three ADCs are being rigorously evaluated both as standalone treatments and in combination therapies for various types of cancer. The collaboration is poised to significantly enhance Merck’s oncology portfolio and could result in substantial advancements in cancer treatment.
As reported by investing.com, under the terms of the agreement, profits from the sales of these drugs will be shared on a global scale, with the exception of Japan, where Daiichi will retain exclusive rights. The companies have high expectations for these drugs, projecting them to generate multi-billion dollar revenues by the mid-2030s, subject to regulatory approval. Notably, one of the drugs from this partnership is anticipated to receive regulatory approval by March 2024.
