FRANKFURT: GlaxoSmithKline bolstered its cancer drug development pipeline, agreeing to pay up to €3.7 billion ($4.22 billion) to Germany’s Merck KGaA for the rights to a novel immunotherapy.
Merck will receive an upfront payment of €300 million for the drug known as M7824 and is eligible for potential development milestone payments of up to €500 million, the two companies said in statements on Tuesday.
Merck will also be eligible for further payments of up to €2.9 billion, depending on commercial milestones, for a total deal value of up to €3.7 billion.
Merck’s shares traded 1.8 per cent higher at 1218 GMT while the German blue-chip index DAX was up 1.1 per cent. — REUTERS