Merck & Co. Inc. will bolster its oncology portfolio – particularly its kidney cancer franchise – with the purchase of Peloton Therapeutics Inc. for $1.1bn up front in a transaction announced 21 May, during the week that the private firm was expected to launch its initial public offering.
Merck Buys Peloton On Eve Of IPO, Expands Kidney Cancer Portfolio
Investors in Peloton, which has the only clinical-stage HIF-2α inhibitor, will get back 3.5 times the $304m in venture capital invested in the firm via the $1.1bn that Merck is paying up front. With all $1.15bn in additional milestone fees, the return could grow to 7.2x.
