Merck forms global alliance with Pfizer for co- developing cancer drug

Germany’s Merck has entered into a global agreement with Pfizer Inc to co-develop and co-commercialise an investigational anti-PD-L1 antibody, MSB0010718C, which is currently being developed by Merck as a potential treatment for multiple tumour types to accelerate the two companies’ presence in immuno-oncology.
 
The asset will be developed as a single agent as well as in various combinations with Pfizer’s and Merck’s broad portfolio of approved and investigational pipeline candidates. The two companies will also combine resources and expertise to advance Pfizer’s anti-PD-1 antibody into Phase 1 trials. As part of the agreement, Merck will co-promote Pfizer’s Xalkori, a medicine to treat non-small cell lung cancer, in the US and several other key markets.
 
Karl-Ludwig Kley, Chairman of Merck’s Executive Board, stated, “After this year's acquisition of AZ Electronic Materials and the proposal to acquire Sigma-Aldrich, we have now turned the focus on healthcare. The agreement with Pfizer is a very important milestone in taking our pharma pipeline forward.”
 
Under the terms of the agreement, Merck will receive an upfront payment of $ 850 million (around Euro 680 million) and is eligible to receive regulatory and commercial milestone payments up to $ 2 billion. Both companies will jointly fund all development and commercialisation costs and all revenues obtained from selling any anti-PD-L1 or anti-PD-1 products generated from this collaboration will be shared.
 
“Collaborating globally with Pfizer will allow us to benefit from the strengths and capabilities of both companies in immuno-oncology, further accelerating this promising asset in the race to address the needs of cancer patients across multiple tumour types. On top of that, the global alliance will enable Merck to gain an early entry into the US oncology market as well as to strengthen our existing oncology business in several other important global markets,” added Belen Garijo, President and Chief Executive Officer of Merck’s biopharmaceutical division Merck Serono and Executive Board Member Elect.
 
Albert Bourla, Group President Vaccines, Oncology and Consumer Healthcare Businesses, Pfizer, said, “Immuno-oncology is a top priority for Pfizer. Combining this promising anti-PD-L1 antibody with Pfizer’s extensive portfolio of small molecules and antibodies provides an opportunity to potentially broaden the use of immunotherapy for patients with cancer and rapidly expand our oncology business.”