Merck acquisition of OncoImmune: A strategic move to strengthen COVID-19 treatment pipeline

TAGS

In a significant acquisition aimed at enhancing its COVID-19 therapeutic offerings, pharmaceutical giant Merck has entered into an all-cash deal valued at $425 million to acquire OncoImmune, a -based clinical-stage biopharmaceutical company. The deal is poised to provide Merck with access to OncoImmune’s promising investigational drug, , which has shown potential in treating severe and critical COVID-19 cases. This acquisition is part of Merck’s ongoing strategy to expand its portfolio of therapies for high-need conditions, including cancer and autoimmune diseases.

OncoImmune’s Strategic Position in the Biopharma Industry

OncoImmune, known for its innovative approach to the treatment of cancer and autoimmune diseases, has gained attention for its work on CD24Fc, a recombinant fusion protein designed to target the innate immune system. Prior to its inclusion in the COVID-19 , CD24Fc had undergone safety studies in healthy volunteers and had been investigated in phase 2 trials for its potential to prevent graft-versus-host disease (GVHD) following stem cell transplants in leukemia patients. The decision by Merck to acquire OncoImmune reflects the growing interest in treatments that can modulate the immune system to combat severe diseases, particularly those related to viral infections.

See also  Regeneron gets Libtayo approval in Japan for advanced cervical cancer

The Promise of CD24Fc in Treating Severe COVID-19

One of the main attractions for Merck in acquiring OncoImmune is the latter’s ongoing phase 3 trial of CD24Fc in COVID-19 patients. Recent interim results from this trial have been promising, showing that the drug may offer benefits beyond the standard of care for COVID-19 patients requiring oxygen support. According to Dr. Roger M. Perlmutter, President of Merck Research Laboratories, CD24Fc could play a critical role in addressing the urgent need for new therapeutic options for COVID-19 patients, particularly those in severe or critical conditions.

Dr. Perlmutter commented on the acquisition, stating, “Meaningful new therapeutic options are desperately needed for possibly millions of people around the world who will develop severe or critical COVID-19 disease. Recent clinical investigations support the view that CD24Fc may provide benefit beyond standard of care therapy for COVID-19 patients requiring oxygen support.”

This aligns with Merck’s ongoing efforts to build a comprehensive pipeline of investigational medicines and vaccines aimed at addressing the global COVID-19 pandemic. The company’s acquisition of OncoImmune could potentially accelerate the availability of CD24Fc, bringing a new treatment option to the market in the near future.

See also  Recce Pharmaceuticals secures approval for Phase 3 trial of R327G in Indonesia

Merck’s Strategic Expansion in Immunotherapies

Merck’s acquisition of OncoImmune is part of a broader strategy to diversify and strengthen its immunotherapy pipeline. The deal highlights the company’s commitment to exploring novel therapeutic approaches that target the immune system, a growing area of interest in both infectious disease treatment and oncology. Beyond COVID-19, OncoImmune’s work on GVHD could provide Merck with additional long-term prospects in the realm of autoimmune disorders and transplant-related complications.

In connection with the acquisition, OncoImmune will spin off certain assets unrelated to the CD24Fc program into a new entity, which will be owned by the company’s existing shareholders. Merck will invest $50 million in the new entity and take a minority stake, further solidifying its partnership with OncoImmune and supporting its future endeavors.

Looking Ahead: The Merck-OncoImmune Deal’s Impact

The Merck acquisition of OncoImmune is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act, as well as other customary conditions. If all conditions are met, the deal is expected to close by the end of the year, positioning Merck to integrate OncoImmune’s assets and advance the clinical development of CD24Fc.

See also  Janssen to acquire skin disease drug candidate bermekimab from XBiotech

This acquisition also follows a recent trend of strategic purchases by Merck to bolster its oncology portfolio. Just earlier this month, the company signed a $2.75 billion all-cash agreement to acquire VelosBio, a -based biopharma company specializing in cancer therapies. With these acquisitions, Merck is significantly expanding its influence in both the infectious disease and oncology sectors, ensuring it remains at the forefront of innovation in the global biopharmaceutical market.

The Merck acquisition of OncoImmune underscores the pharmaceutical giant’s focus on advancing therapies for serious diseases, with a particular emphasis on COVID-19 treatment. As Merck continues to strengthen its pipeline of immunotherapies and vaccines, the acquisition of OncoImmune represents a strategic move that could provide new hope for patients suffering from severe forms of COVID-19. With promising interim results from the CD24Fc trial, Merck is well-positioned to make a meaningful impact on the global fight against the pandemic.


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.

CATEGORIES
TAGS
Share This