Signage is seen at the Merck & Co. headquarters in Kenilworth, New Jersey, U.S., November 13, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing Rights
Oct 19 (Reuters) - Daiichi Sankyo (4568.T) and Merck (MRK.N) have entered into an agreement worth up to $22 billion to develop and commercialize three of Daiichi Sankyo's DXd antibody drug conjugate (ADC) candidates for the treatment of cancer, the companies said on Thursday.
ADCs consist of tumor-seeking monoclonal antibodies that are combined with a cell-killing chemotherapy payload.
Merck will pay Daiichi Sankyo a $4 billion upfront payment in addition to $1.5 billion in continuation payments over the next two years, the statement said, adding that Merck may make additional payments of up to $16.5 billion contingent on future sales milestones.
Merck's investment in the pipeline assets and costs to finance the transaction will also result in a negative impact to EPS of approximately 25 cents in the first 12 months following the close of the transaction, the statement added.
