FDA official announcement and approval records

Merck Licenses Cancer Antibody from Closely Held Chinese Firm LaNova in $588 Million Deal, Up to $2.7B

Nov 14, 2024, 11:48 AM

Merck & Co. has entered into an exclusive global licensing agreement with the closely held Chinese company LaNova Medicines Ltd. to develop, manufacture, and commercialize LM-299, an investigational anti-PD-1/VEGF bispecific antibody. This deal includes an upfront payment of $588 million, with potential milestone payments that could total up to $2.7 billion. The agreement is part of Merck's strategic efforts to bolster its therapeutic pipeline as it faces a significant loss of exclusivity (LOE) for its blockbuster drug Keytruda, projected to result in a $30 billion revenue loss by 2028. This move aligns with the broader trend in the pharmaceutical industry where companies ramp up mergers and acquisitions as they approach major LOEs.