Merck said it will pay up to $2.13 billion under a global licensing deal with China’s SciBrunch Therapeutics for rights to develop, manufacture and sell an experimental cancer treatment. (28/09)

The deal, which has closed, gives Merck access to SPR2015, an oral drug candidate that targets KRAS G12D, one of the most common cancer-driving mutations found in pancreatic, colorectal and lung cancers.

SciBrunch will receive $400 million in upfront payment and could receive up to $1.73 billion in milestone payments, the companies said.

Merck Pays $400 Million Upfront for SPR2015

Merck said the transaction will result in a pre-tax charge of $400 million, or about 13 cents per share, in its third-quarter 2026 results.

The agreement gives Merck rights to develop, manufacture and sell SPR2015 globally.

SPR2015 Targets KRAS G12D Cancer Mutation

SPR2015 is an oral drug candidate targeting KRAS G12D, a cancer-driving mutation found in pancreatic, colorectal and lung cancers.

The drug is in preclinical development and has not yet entered human testing.

Preclinical data presented earlier this year showed that SPR2015 reduced tumor growth in laboratory and animal models of KRAS G12D-mutant cancers, according to the companies.

Deal Expands Merck’s Cancer Drug Pipeline

The agreement comes as Merck works to broaden its cancer drug pipeline ahead of patent expirations for Keytruda, its top-selling immunotherapy, later this decade.

Scotiabank analyst Louise Chen said Merck has visibility into more than $70 billion in commercial opportunity by the mid-2030s.

That figure is more than twice Wall Street’s estimate of about $33 billion for Keytruda’s peak 2028 revenue.

PHOTO: MERCK

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