The pharmaceutical firm will pay $425m up-front for University of Michigan and Ohio State University-founded OncoImmune after the latter pivoted its research pipeline to target severe cases of covid-19.
OncoImmune, a US-based covid-19 treatment developer leveraging University of Michigan and Ohio State University research, is set to be acquired by drug developer Merck & Co in a $425m all-cash transaction.
Merck & Co will acquire OncoImmune through a subsidiary subject to customary regulatory conditions, with the deal anticipated to close before the end of 2020.
In addition to the up-front cash payment, OncoImmune’s exiting shareholders will receive money on the achievement of certain regulatory outcomes and a revenue-share if the spinout’s programme is successful.
Founded in 2000, OncoImmune is currently undertaking phase 3 clinical trials on a proposed treatment, CD24Fc, for severe and critical covid-19 cases.
OncoImmune’s non-covid 19 assets, for diseases such as cancer, will now be spun out into a new entity to be owned by its existing shareholders, with the addition of Merck, which will inject $50m in equity funding.
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