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Merck Joins KRAS Stampede In Deal With Otsuka Affiliates

 
• By Joseph Haas

Merck & Co. is paying $50m up front to combine preclinical KRAS-target cancer compound pipelines with Astex and Taiho, both affiliates of Japan’s Otsuka. The two biotechs could realize up to $2.5bn in earnouts under the collaboration.

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Merck, Taiho and Astex will join forces in KRAS research

Amgen Inc.’s clinical success in targeting the KRAS oncogene for cancer therapy last year has led to large pharma companies entering the space, with Merck & Co. Inc. the most recent entrant via a collaboration with two companies affiliated with Japanese pharma Otsuka Pharmaceutical Co. Ltd. In a deal announced on 6 January, Taiho Pharmaceutical Co. Ltd. and Astex Pharmaceuticals Inc. will share a $50m upfront payment and could earn up to $2.5bn in milestones and other payouts by combining preclinical KRAS pipeline assets with Merck.

The goal is to develop small molecule KRAS (kirsten rat sarcoma virus) inhibitors, as well as cancer drugs addressing other unspecified targets, with Merck funding research and development and holding virtually all commercial rights to the candidates

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