Proxygen inks up to $2.5 billion deal with Merck

Vienna, Austria-based start-up Proxygen today revealed entering a multi-year research collaboration and license agreement with US pharma giant Merck & Co (NYSE: MRK), known as MSD outside the USA and Canada, to jointly identify and develop molecular glue degraders against multiple undisclosed therapeutic targets.

Instead of merely inhibiting a harmful protein’s function, molecular glue degraders eliminate the protein completely. They do this by reprogramming the natural protein recycling machinery present in every cell.

Under the terms of the accord, Proxygen, founded in 2020, will receive an undisclosed upfront from MSD and be eligible for future payments of up to $2.55 billion based on the achievement of specified research, development, and commercial milestones across all programs. Additionally, Proxygen will receive royalties on net sales of any such products.