Merck adds COVID-19 asset, with buy of OncoImmune

US pharma giant Merck & Co (NYSE: MRK) says it will acquire all outstanding shares of OncoImmune for an upfront payment of $425 million in cash.

In addition, privately-held US firm OncoImmune’s shareholders will be eligible to receive sales-based payments and payments contingent on the successful achievement of certain regulatory milestones. OncoImmune recently announced positive top-line findings from an interim efficacy analysis of a Phase III study evaluating its lead therapeutic candidate CD24Fc – also known as Saccovid - for the treatment of patients with severe and critical COVID-19.

Under the agreement, prior to the completion of the acquisition, OncoImmune will spin-out certain rights and assets unrelated to the CD24Fc program to a new entity to be owned by the existing shareholders of OncoImmune. In connection with the closing of the acquisition, Merck will invest $50 million, and become a minority shareholder, in the new entity.