Merck licenses preclinical cancer drug for $400 million upfront

Merck ($MRK) has completed an exclusive worldwide licensing agreement with SciBrunch Therapeutics for SPR2015, an experimental oral inhibitor targeting the active form of KRAS G12D. Merck gains development, manufacturing and commercialization rights. The transaction requires $400 million upfront, while its aggregate potential value, including that payment, reaches $2.13 billion if development and commercial milestones are achieved across multiple indications.

The agreement adds a preclinical molecular-glue candidate to Merck’s oncology pipeline rather than a drug with demonstrated clinical efficacy. Merck expects the upfront payment to produce a $400 million pretax charge, equivalent to approximately $0.13 per share, in third-quarter GAAP and non-GAAP results. Future milestone consideration is conditional, not immediately payable, and successful development, regulatory approval and eventual sales remain uncertain.

Sources:

• Merck company release — Business Wire
• Timestamped distribution