Merck (MRK.US) has agreed to pay up to $1.3 billion to acquire Modifi Biosciences, a cancer therapy developer.
1min read Intellidex Financials learned that Merck (MRK.US) said on Wednesday that it had acquired Modifi Biosciences for up to $1.3 billion, gaining access to its experimental cancer therapies. As part of the deal, Modifi is eligible for up to $1.3 billion in potential milestone payments, and Merck paid $30 million upfront to get access to a new class of cancer therapies called KL-50, which is being developed to treat hard-to-treat brain tumors, including malignant gliomas.
Modifi, based in New Haven, Connecticut, is a preclinical-stage company developing cancer therapies that aim to selectively kill cancer cells by modifying cancer DNA. To date, Modifi has raised $10.7 million in seed funding and has been supported by investors including BrightEdge, the investment arm of the American Cancer Society.
Merck has been looking for the right candidates to replace the revenue lost from its blockbuster cancer immunotherapy Keytruda, which will lose patent protection by the end of the decade. Last year, the company reached a $5.5 billion deal with Japan's Daiichi Sankyo to co-develop three targeted cancer therapies called antibody drug conjugates, which attack tumor cells like "guided missiles" while sparing healthy cells.
