Merck Finalizes Acquisition Of CN201, Investigational B-Cell Depletion Therapy, From Curon Biopharmaceuticals

Merck, operating as MSD outside the U.S and Canada, has officially finalized the acquisition of CN201 from Curon Biopharmaceutical. This novel investigational bispecific antibody in clinical stages is designed to target diseases related to B-cells. Dr. Dean Y. Li, President at Merck Research Laboratories, stated “By actively depleting B-cells, CN201 offers applications spanning both B-cell malignancies and autoimmune diseases. We look forward to building upon the foundational work started by the Curon team,”

CN201, currently in Phase 1 and Phase 1b/2 clinical trials, is being investigated for its therapeutic activity in patients with refractory non-Hodgkin's lymphoma (NHL) and B-cell acute lymphocytic leukemia. Preliminary clinical results indicate that CN201 is active against the cells of patients with refractory B-cell hematologic malignancies and is tolerated well, thus opening the door to clinically meaningful and sustained reductions in B-cell levels.

Under the deal, Merck acquired full worldwide rights to CN201 through one of its subsidiaries. As discussed above, this will be treated as an acquisition of assets. Merck mentioned that it will incur a pre-tax charge of approximately $750 million, or about $0.28 per share, for the upfront payment and costs associated with the above acquisition. The price will appear in the non-GAAP profit and loss for the third quarter. This figure was not included in its fiscal year guidance on July 30. According to the policy, Merck updates its financial projections every quarter, and it will revise its full-year guide on October 31 when reporting its third-quarter results.