Merck KGaA Abandons Evobrutinib Development, Emphasizes Deal-Focused Pipeline Strategy

1. Merck KGaA has decided to stop developing their Bruton's Tyrosine Kinase (BTK) inhibitor, evobrutinib, after experiencing a Phase III disappointment.
2. The company faced a significant setback when evobrutinib did not surpass Sanofi's Aubagio in two Phase 3 multiple sclerosis (MS) clinical trials conducted in December 2023.
3. Merck KGaA announced this decision during their fourth-quarter earnings results presentation, incurring a one-time cost of 95 million euros ($103.5 million).
4. Despite this setback, Merck KGaA remains committed to focusing on external innovation and increasing options for their pipeline via licensing deals instead of solely relying on their internal research and development programs.
5. The company previously expressed high expectations for evobrutinib but ultimately abandoned the program due to the unsuccessful Phase 3 results.