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Merck KGaA Partners with Skyhawk for Neurology Drug Deal Worth Over $2 Billion
ByAinvest
Monday, Aug 18, 2025 9:35 am ET1min read
Merck KGaA has signed a $2 billion pact with Skyhawk Therapeutics to develop neurological therapies. The deal will focus on discovering RNA-targeting small molecules for neurological conditions. Skyhawk will lead discovery and preclinical development efforts, with Merck taking over development and commercialization. Merck CEO Belen Garijo is bolstering the firm's portfolio following drug failures and patent expirations.
Merck KGaA has entered into a strategic collaboration with Skyhawk Therapeutics Inc. to develop neurological therapies, marking a significant investment in the company's drug pipeline. The deal, valued at over $2 billion, includes upfront and milestone payments, with potential royalties on future sales [1].The collaboration will focus on the discovery of RNA-targeting small molecules for neurological conditions with high unmet medical need. Skyhawk will lead discovery and preclinical development efforts using its proprietary SkySTAR® platform, while Merck will take over development and commercialization upon option exercise [2].
This partnership aligns with Merck's strategic focus on innovative science and next-generation technologies. The move comes as Merck seeks to bolster its portfolio following recent drug failures and patent expirations, including for its multiple sclerosis blockbuster Mavenclad [1].
Amy Kao, global head of Merck’s neuroscience & immunology research unit, highlighted the potential of RNA splicing modulation in drug discovery, stating, "We believe RNA splicing modulation represents an exciting frontier in drug discovery" [1].
Skyhawk's Chief Executive Officer, Bill Haney, echoed the sentiment, noting the power of their platform to address challenging disease biology through precise RNA targeting [2].
References:
[1] https://www.bloomberg.com/news/articles/2025-08-18/merck-kgaa-signs-2-billion-neurology-drug-pact-with-skyhawk
[2] https://www.prnewswire.com/news-releases/skyhawk-therapeutics-announces-strategic-collaboration-with-merck-kgaa-darmstadt-germany-to-discover-novel-rna-targeting-small-molecules-for-neurological-disorders-302531254.html
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