(Telestock) – Merck & Co. (also known as MSD outside the United States and Canada), one of the world’s largest pharmaceutical companies, and Curon Biopharmaceutical, a privately held biotechnology company, have entered into a definitive agreement under which Merck, through a subsidiary, has agreed to acquire CN201a novel clinical-stage investigational bispecific antibody for the treatment of B-cell-associated diseases.
“We continue to identify opportunities to expand and diversify our pipeline – said Dean Li, president of Merck Research Laboratories – Early clinical data have provided robust evidence of CN201’s potential to target and deplete circulating and tissue B cells with the potential to treat a range of malignancies and autoimmune diseases.”
Under the terms of the agreement, Merck through a subsidiary will acquire all global rights to CN201 for a advance payment of $700 million in cash. Curon also right to receive up to $600 million in milestone payments associated with the development and regulatory approval of CN201.
The transaction is expected to close in the third quarter of 2024 and will be accounted for as an acquisition of assets. Merck expects to record a pre-tax burden of approximately 750 million of dollars (reflecting the upfront payment and other related costs), or approximately $0.28 per share.