Merck Acquires Harpoon Therapeutics for $680 Mn

In January, Merck announced the acquisition deal for $680 million. Now it has successfully completed the deal acquiring the cancer drugmaker Harpoon Therapeutics completely.

Global drugmaker Merck, also known as MSD has completed the acquisition of Harpoon Therapeutics Inc, an immuno-oncology company that is now a wholly-owned subsidiary of Merck.

In January, Merck announced the acquisition deal for $680 million. Now it has successfully completed the deal acquiring the cancer drugmaker Harpoon Therapeutics completely.

Sharing thoughts, Dean Y Li, president, Merck Research Laboratories, said, “We continue to augment and diversify our oncology pipeline with innovative approaches to help people with cancer worldwide. We are pleased to welcome our Harpoon colleagues to Merck and look forward to working together to advance a novel portfolio of T-cell engagers, including MK-6070.”

Rationale Behind the $680 Mn Deal

With this move, Merck aims to focus on cancer and explore the potential of immuno-oncology with one of the largest development programs in the industry across more than 30 tumor types.

“We also continue to strengthen our portfolio through strategic acquisitions and are prioritizing the development of several promising oncology candidates with the potential to improve the treatment of advanced cancers.’’ the company said in a statement.

Under the terms of the merger agreement, Merck, through a subsidiary, has acquired all outstanding shares of Harpoon. Merck paid $23 per share for South San Francisco-based Harpoon.

As previously mentioned, this transaction is being accounted for as an asset acquisition.

Harpoon Therapeutics is a clinical-stage immunotherapy company developing a novel class of T-cell engagers designed to harness the power of the body's immune system to treat patients suffering from cancer and other diseases.

Harpoon’s lead candidate is MK-6070 (formerly known as HPN328), a T-cell engager targeting delta-like ligand 3 (DLL3), an inhibitory canonical Notch ligand that is expressed at high levels in small cell lung cancer (SCLC) and neuroendocrine tumors.

Moreover, the safety, tolerability, and pharmacokinetics of MK-6070 are currently being evaluated as monotherapy in a Phase 1/2 clinical trial (NCT04471727) in certain patients with advanced cancers associated with the expression of DLL3.

Along with that, the study is also evaluating MK-6070 in combination with atezolizumab in certain patients with SCLC. In March 2022, the US Food and Drug Administration (FDA) granted Orphan Drug Designation to MK-6070 for the treatment of SCLC.

Additional candidates include a T-cell engager targeting B-cell maturation antigen (BCMA), currently in Phase 1 clinical development for the treatment of patients with relapsed/refractory multiple myeloma.

This also includes several preclinical stage candidates, such as a conditionally activated targeting epithelial cell adhesion molecule (EpCAM) for the treatment of certain patients with EpCAM-expressing tumors.

Merck Life Science was incorporated in 1986 as a joint venture with Millipore Corporation, USA, and became a 100% subsidiary of Millipore Corporation in 2009.

Millipore then was acquired by Merck Chemicals in 2010. Merck Life Sciences offers researchers advanced tools, services, and expertise worldwide. According to the drugmaker, they offer one of the broadest portfolios in the industry for scientists, and their innovations touch individuals globally.

Earlier, Merck acquired Caraway Therapeutics, through a definitive agreement valued at around $620 million. This move aims at strengthening Merck's portfolio in the neurodegenerative disease space. The deal includes an undisclosed upfront payment and contingent milestone payments.