By Angela Chen
Merck & Co. acquired privately held OncoEthix for up to $375
million, its latest push into the oncology market as the
pharmaceutical giant continues bolstering its
research-and-development pipeline.
OncoEthix is a Swiss-based biotechnology company specializing in
oncology, or the study of cancer, one of the areas that Merck has
been eyeing for R&D growth.
The deal includes an upfront payment of $110 million, and
OncoEthix is eligible for additional milestone payments of up to
$265 million, contingent upon clinical and regulatory approval.
Through the acquisition, Merck gains OTX015, a BET (bromodomain)
inhibitor that is currently in Phase 1b studies for the treatment
of advanced solid tumors.
"Oncology is a priority area of focus for Merck and the
acquisition of OncoEthix supports our strategy to prioritize the
development of innovative molecules with the potential to improve
the treatment of advanced cancers," said Roy Baynes, senior vice
president of global clinical development for Merck.
Merck announced in 2013 a strategy to narrow its focus to areas
including acute hospital care, vaccines and oncology.
Its leaders have made clear they aren't interested in pursuing
large-scale acquisitions, but rather more modest-size, "bolt-on"
deals that bolster the company's research-and-development pipeline
and its product lineup.
Merck has an aging drug portfolio and its top-selling product,
diabetes treatment Januvia, isn't growing like it used to. The
company recently got a cancer immunotherapy called Keytruda
approved. Earlier this month, Merck purchased Cubist
Pharmaceuticals, which specializes in fighting infectious diseases,
for $8.4 billion.
Shares of Merck, inactive premarket, are up about 15% this year
through Wednesday's close.
Write to Angela Chen at angela.chen@wsj.com
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