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

19 December 2014

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.

Gains access to BET inhibitor OTX015

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK