Merck adds to COVID-19 clinical programs through OncoImmune acquistion

 

• Merck (NYSE:MRK) through its subsidiary to acquire all outstanding shares of OncoImmune for an upfront payment of $425M in cash.
• Additionally, OncoImmune shareholders will be eligible to receive sales-based payments and payments contingent on the successful achievement of certain regulatory milestones.
• OncoImmune recently announced positive top-line findings from an interim efficacy analysis of a Phase 3 study evaluating its lead therapeutic candidate CD24Fc for the treatment of patients with severe and critical COVID-19.
• The coimpany will accelerate development of CD24Fc, a candidate for the treatment of patients with severe and critical COVID-19
• Under the agreement, prior to the completion of the acquisition, OncoImmune will spin-out certain rights and assets unrelated to the CD24Fc program to a new entity to be owned by the existing shareholders of OncoImmune.
• In connection with the closing of the acquisition, Merck will invest $50M, and become a minority shareholder, in the new entity.
• The closing of the acquisition is subject to approval and is expected before the end of 2020.
• https://seekingalpha.com/news/3638577-merck-adds-to-suite-of-covidminus-19-clinical-programs-through-oncoimmune-acquistion