Merck to acquire Harpoon Therapeutics for $680m to strengthen oncology pipeline
Merck (NYSE: MRK), known as MSD outside the United States and Canada, and Harpoon Therapeutics, Inc. (Nasdaq: HARP) have entered a definitive agreement where Merck will acquire Harpoon for $23 per share in cash, totaling an approximate equity value of $680 million. This strategic acquisition aims to bolster Merck’s oncology pipeline with Harpoon’s advanced cancer treatment technologies.
Enhancing Oncology Portfolio with Novel T-cell Engagers
Harpoon Therapeutics has developed an innovative portfolio of novel T-cell engagers utilizing its proprietary Tri-specific T cell Activating Construct (TriTAC) and ProTriTAC platforms. These engineered protein technologies are designed to direct a patient’s immune cells to target and eliminate tumor cells. The acquisition enables Merck to leverage these groundbreaking technologies in the treatment of various cancers.
Focus on the Lead Candidate HPN328
Harpoon’s lead candidate, HPN328, targets delta-like ligand 3 (DLL3), an inhibitory canonical Notch ligand found in small cell lung cancer (SCLC) and neuroendocrine tumors. HPN328 is currently undergoing a Phase 1/2 clinical trial and has shown positive interim tolerability and response data in certain patients with SCLC and neuroendocrine tumors. The FDA has granted HPN328 Orphan Drug Designation for the treatment of small cell lung cancer.
Comments from Merck and Harpoon Executives
Dr. Dean Y. Li, president of Merck Research Laboratories, emphasized the importance of strategic acquisitions in enhancing Merck’s oncology pipeline. Julie Eastland, president and CEO of Harpoon Therapeutics, expressed confidence in Merck’s ability to advance their cancer immunotherapy candidates, highlighting the potential of HPN328.
Strategic Oncology Acquisition: Merck to Purchase Harpoon Therapeutics in Major Deal
Additional Pipeline Candidates and Acquisition Terms
Harpoon’s pipeline also includes HPN217 targeting B-cell maturation antigen (BCMA) and several preclinical stage candidates. Under the terms of the agreement, Merck will acquire all outstanding shares of Harpoon for a price of $23.00 per share in cash. The Board of Directors of Harpoon has unanimously approved the transaction, expected to close in the first half of 2024.
Financial and Legal Advisors in the Transaction
Evercore Group L.L.C. and Covington & Burling LLP acted as financial and legal advisors to Merck, respectively. Centerview Partners LLC and Goodwin Procter LLP provided financial and legal advisory services to Harpoon.
A Significant Step in Cancer Treatment Innovation
The acquisition of Harpoon Therapeutics by Merck represents a significant step in enhancing Merck’s capabilities in cancer treatment innovation. This move underscores Merck’s commitment to advancing breakthrough science and addressing the needs of people with cancer worldwide.