Merck Signs Global License Deal For LaNova’s LM-299, Investing Over $588 Million Upfront

Merck, known as MSD outside the U.S. and Canada, has announced an exclusive worldwide license agreement with LaNova Medicines Ltd., a clinical-stage biotech firm. Today, the company announced that Merck had entered into an exclusive contract to develop, manufacture, and commercialise LM-299, a novel PD-1/VEGF bispecific antibody created by LaNova. This deal grants Merck full global rights to the investigational therapy.

Dr Dean Y. Li, president of Merck Research Laboratories, said in a statement, “At Merck, we continue to assemble a strong and diversified oncology pipeline spanning differentiated mechanisms and multiple modalities. This agreement adds to Merck’s growing oncology pipeline, and we look forward to advancing LM-299 with speed and rigour for patients in need.”

As part of the agreement, Merck will make an initial payment of $588 million to LaNova, with the potential for additional costs of up to $2.7 billion based on milestones for technology transfer, development, regulatory approval, and commercialisation of LM-299 for various indications.

Dr. Crystal Qin, founder, chairwoman and chief executive officer of LaNova, stated, “This agreement with Merck is a strong testament to the hard work of LaNova’s talented team of scientists who created LM-299. Through internal R&D innovation and strategic external partnerships, LaNova is committed to advancing its pipeline to benefit patients worldwide.”

The transaction remains subject to regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act and other standard conditions, with an expected close in the fourth quarter of 2024. Merck plans to account for the $588 million payment in GAAP and non-GAAP earnings for the quarter when the transaction is finalised, with EPS impact details to be disclosed.