Merck & Co. Expands Oncology Pipeline with Kelun-Biotech ADCs

Merck & Co. and Kelun-Biotech Collaboration:
Merck & Co. and Kelun-Biotech entered into an exclusive license and collaboration agreement to develop seven investigational preclinical ADCs for cancer treatment, with a potential deal value of up to $9.3 billion.

Upfront Payment and Milestones:
Kelun-Biotech received an upfront payment of $175 million and is eligible for future milestone payments and tiered royalties on net sales.

Termination of CLDN18.2 Program:
Merck terminated an exclusive license for one program and declined to exercise an option for another ADC targeting CLDN18.2.

Focus on TROP2 ADC:
Merck is investing heavily in the TROP2 ADC sacituzumab tirumotecan, with a phase 3 program seeking nearly 10,000 patients.

Diversification of Oncology Pipeline:
Merck is spreading its bets across various technologies, including ADCs, bispecifics, and personalized neoantigen projects, aiming to generate over $20 billion in annual sales by the mid-2030s.