On October 19, 2023, at 7:30 pm ET, the collaboration between Daiichi Sankyo and Merck was announced. This collaboration aims to advance and expand the reach of antibody-drug conjugates (ADCs) for the treatment of multiple types of cancer. Daiichi Sankyo brings its expertise in ADC development and DXd technology, while Merck contributes its experience in oncology and clinical development.
As part of the agreement, Daiichi Sankyo and Merck will co-develop and co-commercialize three ADC candidates worldwide, excluding Japan where Daiichi Sankyo retains exclusive rights. These candidates are patritumab deruxtecan (HER3-DXd), ifinatamab deruxtecan (I-DXd), and raludotatug deruxtecan (R-DXd). Daiichi Sankyo will be responsible for manufacturing and supply.
Merck will make an upfront payment of $4 billion to Daiichi Sankyo, along with $1.5 billion in continuation payments over the next 24 months. Additionally, there is a potential for up to $16.5 billion in additional payments based on future sales milestones, bringing the total potential consideration to $22 billion.
The collaboration between Daiichi Sankyo and Merck will significantly contribute to the development of ADCs and provide new treatment options for cancer patients. Both companies are committed to delivering these potential new therapies to patients worldwide.
The financial terms of the agreement include upfront payments and milestone payments based on sales achievements. Merck will also pay additional upfront payments of $1 billion, with a portion potentially refundable in case of early termination of development. The two companies will share expenses and profits equally, except in Japan where Daiichi Sankyo retains exclusive rights.
Daiichi Sankyo’s DXd ADC portfolio consists of six ADCs in various stages of clinical development for multiple types of cancer. The collaboration with AstraZeneca and Merck allows for joint development and commercialization of these ADCs globally.
It is important to note that the ADC candidates mentioned in this announcement are investigational medicines and have not yet been approved for any indication. The safety and efficacy of these candidates are still being evaluated.
Daiichi Sankyo and Merck are committed to advancing the field of oncology and providing innovative medicines to patients around the world. For more information, please visit the respective websites of Daiichi Sankyo (www.daiichisankyo.com) and Merck (www.merck.com).
