On Tuesday, the 5th of February, the GSK (GlaxoSmithKline) had supplemented its cancer drug development pipeline, approving a pay-off of $4.2 billion to German Merck KGaA in order to attain the rights of a next-gen immunotherapy.
The German Merck-developed next-generation immunotherapy for cancer, known as the M7824 or bintrafusp alfa, could be a landmark development for the treatment of lung cancer, a disease which has been considered as the most lucrative among the pharmaceuticals all over the world.
For handing over the rights of the drug, the German drug maker and researcher Merck KGaA, would be receiving 300 million euros upfront, while they would also be eligible for receiving up to 500 million euro, depending on the specificity of the drug in the treatment of lung cancer, GSK and German drug maker Merck KGaA announced on Tuesday, February the 5th.
As a part of the deal, the Merck would be receiving revenues form future sales of the product in United States, while the GlaxoSmithKline would account for the sales of other parts of the world. Last year in December, the GSK first revealed its intention of bolstering its cancer medication portfolio, when it had purchased the Tesaro at a $5.1 billion deal.
In the later part of December, it had unveiled its plan of separating vaccine & prescription drug business from the sales of over the counter medications. Addressing the deal as a robust uplift, the GSK said in the statement, “For GSK, this alliance is a further step in the company’s priority to strengthen its pharmaceuticals pipeline. ”