Merck and Co. To Acquire Peleton Therapeutics in $2.2-Billion Deal
Merck & Co. has entered into a definitive agreement with Peleton Therapeutics, a clinical-stage biopharmaceutical company, under which Merck, through a subsidiary, will acquire all outstanding shares of Peleton for $1.05 billion upfront plus a further $1.15 billion contingent upon successful achievement of future regulatory and sales milestones for certain candidates.
Peleton is focused on the development of small-molecule therapeutic candidates targeting hypoxia-inducible factor-2α (HIF-2α) for the treatment of patients with cancer and other non-oncology diseases. Peloton’s lead candidate is PT2977, an oral HIF-2α inhibitor in late-stage development for renal cell carcinoma. PT2977 is currently being evaluated in Phase II clinical trials.
Closing of the agreement is subject to conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. The companies expect the acquisition to be completed in the third quarter of 2019.