Merck (MSD) has signed a definitive agreement to acquire all outstanding shares of clinical-stage biopharmaceutical firm OncoImmune through a subsidiary, for an upfront payment of $425m in cash.

Under the deal, OncoImmune shareholders will receive sales-based payments and payments contingent on achieving certain regulatory milestones.

With this deal, Merck will add OncoImunne’s clinical programmes in response to Covid-19 to its suite.

The company will also accelerate the development of the Covid-19 therapeutic candidate, CD24Fc.

In September, OncoImmune reported positive top-line findings from an interim efficacy analysis of a Phase III SAC-COVID trial of CD24Fc for treating severe or critical Covid-19 patients.

Results showed that patients with severe or critical Covid-19 given a single dose of CD24Fc showed a 60% higher probability of improvement in clinical status versus placebo.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Merck Research Laboratories president Dr Roger Perlmutter said: “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, and hence will represent an important addition to the Merck pipeline of investigational medicines and vaccines designed to address the Covid-19 pandemic.”

Before the closing of the deal, expected before this year-end, OncoImmune will spin-out certain rights and assets unrelated to the CD24Fc programme to a new entity.

In addition, Merck will invest $50m and become a minority shareholder in the new entity owned by the OncoImmune’s existing shareholders.

In April, the US FDA gave approval to OncoImmune to conduct a Phase III trial of CD24Fc to treat patients with Covid-19.

Pharmaceutical Technology Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Pharmaceutical Technology Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now