Merck announced on Monday that it would acquire California-based biotech company Harpoon Therapeutics for an enterprise value of $680 million, in order to diversify its oncology portfolio.

The pharmaceutical group explains that the deal will enable it to get its hands on HPN328, a T-cell-engaging monoclonal antibody that targets the DLL3 protein, currently undergoing phase 1/2 evaluation in selected patients with lung cancer and neuroendocrine tumors.

In a press release, Merck - whose patent on its blockbuster immunotherapy Keytruda is due to expire in 2028 - explains that it intends to combine HPN328 with other molecules from its current project portfolio.

Under the terms of the agreement, the laboratory plans to offer $23 in cash for each Harpoon share, whose Board of Directors has unanimously voted in favor of the transaction.

The transaction is expected to be finalized by the end of the first half of the year.

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