Merck secures exclusive global license for opevesostat from Orion Corporation

Merck (NYSE: MRK), also known as MSD outside the United States and Canada, has enhanced its strategic position in the oncology market by securing an exclusive global license for opevesostat (MK-5684/ODM-208) and other CYP11A1 targeting candidates, following a mutual agreement with Orion Corporation. This pivotal deal marks a significant advancement in the treatment of prostate cancer, with Merck assuming complete responsibility for the future development and potential commercialization of these promising therapeutic candidates.

The license transition is a result of the successful exercise of an option within the original co-development and co-commercialization agreement between Merck and Orion. This move is aligned with Orion’s strategy to optimize its resource allocation across its portfolio while capitalizing on Merck’s extensive global reach and clinical development prowess to maximize the potential of opevesostat.

Dr. Dean Y. Li, President of Merck Research Laboratories, expressed confidence in the progress of the collaboration, highlighting the initiation of two pivotal Phase 3 trials aimed at addressing the needs of patients with metastatic castration-resistant prostate cancer (mCRPC). Liisa Hurme, President and CEO of Orion Corporation, also emphasized the strategic benefit of this licensing agreement, which allows Orion to focus on advancing its other development candidates.

Opevesostat, initially discovered by Orion, is a novel, non-steroidal oral inhibitor targeting the CYP11A1 enzyme, a new approach in the fight against hormone-dependent cancers like prostate cancer. By inhibiting CYP11A1 activity, opevesostat aims to suppress all steroid hormones that could potentially activate the androgen receptor signaling pathway, which is a key driver in prostate cancer progression.

In 2023, Merck and Orion launched two major Phase 3 clinical trials—OMAHA1 and OMAHA2a—to evaluate opevesostat in combination with hormone replacement therapy (HRT). These studies are designed to assess the effectiveness of opevesostat in both later-line and front-line mCRPC settings compared to current standard hormonal agents, with endpoints focusing on overall survival and radiographic progression-free survival.

Under the terms of the revised agreement, Orion stands to receive up to $1.63 billion in combined milestone payments across development, regulatory, and sales stages, along with royalty payments on future net sales, reflecting the significant commercial potential of opevesostat. This financial structure is designed to reward both parties based on the clinical success and market acceptance of the treatments developed.

Merck’s commitment is underscored by its readiness to undertake all future development and commercialization expenses, which reflects its confidence in the potential of these therapies. Furthermore, Orion will continue to manufacture clinical and commercial supplies, ensuring control over the production quality of these critical treatments.

The completion of this license agreement is subject to customary regulatory approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act, with an expected finalization in the third quarter of 2024. This strategic partnership not only enhances Merck’s oncology pipeline but also strengthens its position in a competitive market by adding a novel therapy with the potential to transform the treatment landscape for prostate cancer.

This development represents a strategic realignment in the pharmaceutical industry, where companies like Merck leverage their global networks and development capabilities to bring innovative treatments to market more efficiently. The exclusive licensing agreement with Orion Corporation could set a precedent in the industry for dealing with complex therapies that require specialized development approaches and robust commercial strategies.