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Merck Buys Peloton On Eve Of IPO, Expands Kidney Cancer Portfolio

 
• By Mandy Jackson

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.

Human kidney cross section on scientific background showing adrenal gland as well. 3d illustration
Acquiring Peloton will expand Merck's kidney cancer portfolio • Source: Shutterstock

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.

The deal gives venture capital investors a return of at least 3.5 times the $304m invested in Peloton to date, based on the VC funding total the Dallas, TX-based company disclosed in documents filed with the US Securities and Exchange Commission (SEC) in support of its planned IPO. The return will be 7

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