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Merck KGaA, Vertex Announce Tie-Up for Oncology Programs
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Germany-based Merck KGaA (MKGAF - Free Report) announced that it has entered into a licensing agreement with Vertex Pharmaceuticals Incorporated (VRTX - Free Report) for the global development and commercialization of four research and development programs for the treatment of cancer.
A look at Merck KGaA’s share price movement in the past one year shows that the company has outperformed the Medical Drugs industry, with the stock increasing 19.6%, compared with the industry’s drop of 6.5%.
On the other hand, shares of Vertex have underperformed the Zacks classified Medical-Biomedical/Genetics industry. The stock lost 15% during this period, while the industry dropped 8.2%.
Terms of the Agreement
Merck KGaA will get global licenses to two clinical-stage programs targeting DNA damage repair: ATR (ataxia telangiectasia and Rad3-related protein inhibitor), including VX-970 and VX-803, and DNA-PK, including VX-984. Merck KGaA also has the exclusive worldwide rights to two preclinical programs.
In exchange, Vertex will receive an upfront payment of $230 million. The company will also receive royalties on future net sales.
Meanwhile, Merck KGaA will be fully responsible for the development and commercialization of the programs.
Note that VX-970 is being evaluated in phase I and phase II studies across a variety of tumors. VX-803 is currently being studied in phase I studies both as monotherapy and in combination with chemotherapy. VX-984 is also in phase I studies both as monotherapy and in combination with pegylated liposomal doxorubicin for the treatment of advanced solid tumors.
The latest strategic deal will strengthen Merck KGaA’s oncology pipeline in two important areas – DNA damage and repair, and immuno-oncology.
We remind inventors that Merck KGaA has inked several important collaborations in the past to boost its oncology pipeline. One of the major ones includes that with Pfizer Inc. (PFE - Free Report) for the co-development and co-commercialization of an anti-PD-L1 monoclonal antibody, avelumab. Currently, avelumab is being developed for more than 15 types of tumors including breast, gastric/gastroesophageal junction, head and neck, Hodgkin's lymphoma, melanoma, mesothelioma, non-small cell lung, ovarian, renal cell carcinoma and urothelial (primarily bladder).
Key Picks in the Sector
Investors looking for a favorably placed stock in the health care sector can consider Sucampo Pharmaceuticals, Inc. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sucmapo’s earnings estimates were stable at $1.22 for 2016 but have increased from $1.30 to $1.74 for 2017 over the last 60 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 35.5%.
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Merck KGaA, Vertex Announce Tie-Up for Oncology Programs
Germany-based Merck KGaA (MKGAF - Free Report) announced that it has entered into a licensing agreement with Vertex Pharmaceuticals Incorporated (VRTX - Free Report) for the global development and commercialization of four research and development programs for the treatment of cancer.
A look at Merck KGaA’s share price movement in the past one year shows that the company has outperformed the Medical Drugs industry, with the stock increasing 19.6%, compared with the industry’s drop of 6.5%.
On the other hand, shares of Vertex have underperformed the Zacks classified Medical-Biomedical/Genetics industry. The stock lost 15% during this period, while the industry dropped 8.2%.
Terms of the Agreement
Merck KGaA will get global licenses to two clinical-stage programs targeting DNA damage repair: ATR (ataxia telangiectasia and Rad3-related protein inhibitor), including VX-970 and VX-803, and DNA-PK, including VX-984. Merck KGaA also has the exclusive worldwide rights to two preclinical programs.
In exchange, Vertex will receive an upfront payment of $230 million. The company will also receive royalties on future net sales.
Meanwhile, Merck KGaA will be fully responsible for the development and commercialization of the programs.
Note that VX-970 is being evaluated in phase I and phase II studies across a variety of tumors. VX-803 is currently being studied in phase I studies both as monotherapy and in combination with chemotherapy. VX-984 is also in phase I studies both as monotherapy and in combination with pegylated liposomal doxorubicin for the treatment of advanced solid tumors.
The latest strategic deal will strengthen Merck KGaA’s oncology pipeline in two important areas – DNA damage and repair, and immuno-oncology.
We remind inventors that Merck KGaA has inked several important collaborations in the past to boost its oncology pipeline. One of the major ones includes that with Pfizer Inc. (PFE - Free Report) for the co-development and co-commercialization of an anti-PD-L1 monoclonal antibody, avelumab. Currently, avelumab is being developed for more than 15 types of tumors including breast, gastric/gastroesophageal junction, head and neck, Hodgkin's lymphoma, melanoma, mesothelioma, non-small cell lung, ovarian, renal cell carcinoma and urothelial (primarily bladder).
Key Picks in the Sector
Investors looking for a favorably placed stock in the health care sector can consider Sucampo Pharmaceuticals, Inc. , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sucmapo’s earnings estimates were stable at $1.22 for 2016 but have increased from $1.30 to $1.74 for 2017 over the last 60 days. The company posted a positive earnings surprise in all of the four trailing quarters with an average beat of 35.5%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>