Merck (MRK.US) acquires biotechnology company Modifi Bio

On October 23, Modifi Bio announced it was acquired by Merck (MRK.US). Merck will gain access to Modifi Bio's preclinical compounds that target DNA repair defects to treat refractory cancers. These drugs are unique in that they do not target specific proteins, but rather directly target the DNA of cancer cells. Under the terms of the agreement, Modifi Bio will receive a $30 million upfront payment and is eligible to receive potential milestone payments of up to $1.3 billion. Modifi Bio was founded in 2021 and is a biotechnology company derived from groundbreaking research by scientists at Yale University. Earlier this year, Modifi Bio completed two seed financing rounds, raising a total of $10.7 million. The founding team of Modifi Bio includes world-renowned scientists, clinicians, and experienced biotechnology entrepreneurs with deep expertise in synthetic chemistry, DNA repair, and translational cancer research. Modifi Bio has developed a new class of small molecule drugs that target cancer cells deficient in a key DNA repair protein, O6-methylguanine methyltransferase (MGMT).