Vertex buys back two DNA damage response inhibitors under Merck deal

Germany’s Merck KGaA (MRK: DE) says it has entered into an exclusive licensing agreement with Vertex Pharmaceuticals (Nasdaq: VRTX) for two DNA-dependent protein kinase (DNA-PK) inhibitors - M9831 (formerly known as VX-984) and an additional pre-clinical compound - in the field of gene editing for six specific genetic disease indications.

Merck will receive an undisclosed upfront payment in addition to milestones and royalties on future net sales and retains the rights to both assets in all other disease areas, including oncology, with the ability to develop both these compounds in-house, or to license them to future partners in the gene editing field. Vertex has the option to add indications to the license grant.

Both molecules were acquired in a licensing agreement from Vertex in 2017, when Merck paid Vertex $230 million upfront for the rights to four cancer programs, and are part of the company's broad portfolio of DNA Damage Response (DDR) inhibitors.