Merck & Co in up to $375 million deal to acquire OncoEthix

19 December 2014
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US pharma giant Merck & Co (NYSE: MRK) said yesterday that it has acquired, through a subsidiary, Swiss-based privately held biotech company OncoEthix, which specializes in oncology drug development. Merck’s shares rose 2.34% to $58.98 following the announcement.

Financial terms of the acquisition include an upfront payment of up to $110 million to OncoEthix. Additional milestone payments of up to $265 million are contingent upon certain clinical and regulatory events being achieved, meaning the deal could cost Merck as much as $375 million, still very little compared to the $8.4 billion that the company intends to expend on its proposed purchase of Cubist Pharmaceuticals (Nasdaq: CBST) announced earlier this month.

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