Merck to Acquire Biotech Company Afferent -- Update
June 09 2016 - 7:07PM
Dow Jones News
By Josh Beckerman
Merck & Co. has agreed to purchase biotechnology company
Afferent Pharmaceuticals, whose lead drug candidate is being
evaluated as a treatment for refractory, chronic cough and
idiopathic pulmonary fibrosis with cough.
The deal will include an upfront payment of $500 million and
milestones of up to $750 million.
San Mateo, Calif.-based Afferent focuses on targeting the P2X3
receptor for neurogenic conditions.
Last month, Afferent reported that its lead candidate, AF-219,
significantly reduced cough frequency in the first cohort of a
two-cohort, Phase 2b study of chronic cough patients.
In July, Afferent said it completed a $55 million Series C
financing led by Fidelity Management & Research Co.
Biotech deals have been abundant, with big drug companies
refreshing their portfolios as patents expire for older
products.
Merck's recent financial results have been hurt by generic
versions of Remicade, a treatment for inflammatory diseases, and
allergy-symptom treatment Nasonex.
Afferent was founded in 2009, when it licensed Roche Holding
AG's P2X3i receptor program and raised $23 million in Series A
financing. At the time, AF-219 was in development as a treatment
for chronic pain.
The company's investors have included Pappas Ventures, New Leaf
Venture Partners, Third Rock Ventures and Domain Associates.
Merck expects to complete the deal in the third quarter. The
company's recent acquisitions have included an $8.3 billion deal
for antibiotic maker Cubist Pharmaceuticals and the purchase of
cancer-focused IOmet Pharma.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
June 09, 2016 18:52 ET (22:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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