Merck to acquire US biopharma company VelosBio to strengthen oncology pipeline

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Merck acquisition of VelosBio : US pharma giant Merck has agreed to acquire VelosBio, a California-based clinical-stage biopharma company, for $2.75 billion in an all-cash deal, in a move to strengthen its oncology pipeline.

VelosBio is engaged in developing cancer therapies that target receptor tyrosine kinase-like orphan receptor 1 (ROR1).

The company’s lead investigational candidate – VLS-101, an antibody-drug conjugate (ADC), targets ROR1.

Presently, VLS-101 is being assessed in a phase 1 and a phase 2 clinical trial for the treatment of hematologic malignancies and solid tumors, respectively.

Commenting on Merck acquisition of VelosBio, Dr. Roger M. Perlmutter – president of Merck Research Laboratories said: “At Merck, we continue to bolster our growing oncology pipeline with strategic acquisitions that both complement our current portfolio and strengthen our long-term growth potential.

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“Pioneering work by VelosBio scientists has yielded VLS-101, which in early studies has provided notable evidence of activity in heavily pretreated patients with refractory hematological malignancies, including mantel cell lymphoma and diffuse large B-cell lymphoma.”

Last month, VelosBio began a phase 2 clinical trial for assessing VLS-101 for the treatment of patients having solid tumors, including those with triple-negative breast cancer (TNBC), non-squamous non-small-cell lung cancer (NSCLC), and hormone receptor-positive and/or HER2-positive breast cancer.

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VLS-101, in early clinical trials, showed a manageable safety profile and early signs of anti-tumor activity.

Dave Johnson – founder and CEO of VelosBio, commenting on Merck acquisition of VelosBio, said: “Merck is a recognized leader in oncology, and this acquisition reflects the hard work and commitment of all the employees at VelosBio in advancing the science of ROR1.

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“We are very pleased that Merck has recognized the value of our first-in-class ROR1-directed investigational therapeutics. As part of Merck’s oncology pipeline, our lead product candidate, VLS-101, is now well positioned to achieve its maximum potential to benefit appropriate cancer patients in need.”

Merck acquisition of VelosBio, which is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and meeting of other customary conditions, is expected to be closed by the year-end.

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