Merck & Co. and LaNova Medicines, a Shanghai-based bio/pharmaceutical company, have entered into an exclusive global license to develop, manufacture and commercialize LaNova Medicine’s LM-299, an investigational bispecific antibody from LaNova, in a deal worth up to $3.3 billion ($588 million upfront and $2.7 billion in milestone payments). 

LM-299 is an investigational bispecific antibody targeting both programmed cell death protein-1 (PD-1) and vascular endothelial growth factor (VEGF). The therapeutic approach is designed to inhibit both PD-1/PD-L1 and VEGF/VEGFR receptor signaling pathways releasing a key immune checkpoint while also inhibiting the production of new blood vessels (angiogenesis). LM-299 has a differentiated molecular design, comprising an anti-VEGF antibody linked to two C-terminal single domain anti-PD-1 antibodies. A Phase I clinical trial for LM-299 is currently enrolling patients in China. 

Under the agreement, LaNova has granted Merck an exclusive global license to develop, manufacture, and commercialize LM-299. LaNova will receive an upfront payment of $588 million. LaNova is also eligible to receive up to $2.7 billion in milestone payments associated with the technology transfer, development, regulatory approval, and commercialization of LM-299 across multiple indications. 

Closing of the proposed transaction is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. The transaction is expected to close in the fourth quarter of 2024. 

Source: Merck & Co.