Pfizer signs cancer deal with German Merck

Pfizer signs cancer deal with German Merck 1

Pfizer is one of the giants of the pharmaceutical industry. For a very long time, Pfizer was in pursuit to sign AstraZeneca on a block buster deal. But after a few attempts, Pfizer failed to sign AstraZeneca which let its hopes ending in smoke. Moreover, Pfizer dampens Astra bid hopes with German Merck cancer deal. Reuters reported “Pfizer (PFE.N) dampened investors’ expectations of a renewed bid for AstraZeneca (AZN.L) on Monday by signing a major cancer drug deal with Germany’s Merck KGaA (MRCG.DE), reducing the U.S. firm’s need for Astra’s products.”

Pfizer did not only require the products of AstraZeneca but the company was also looking to clear itself from tax inversion case. But whatsoever, the company has signed a huge cancer deal with German Merck. Merck will get an upfront payment of $850 million from the U.S. drug maker for sharing rights to develop its experimental immunotherapy drug with PFE . It is also eligible for up to $2 billion in payments based on the medicine’s future success. The company said “Merck’s MSB0010718C is part of a class of drugs known as anti-PD-L1 therapies, which work by blocking a tumor’s ability to evade the immune system’s defense.”

Pfizer signs cancer deal with German Merck 3

The huge deal signed between either parties or companies means that either Pfizer or Merck are not allowed to collaborate with some other drug maker in the PD-LI or related PD-1 area. It can only happen if they jointly agree to do so. The company officials said “Winning access to AstraZeneca’s cancer pipeline has been viewed as a major goal for Pfizer, which was unsuccessful with a $118 billion bid for the British group in May. It has a chance to renew its approach under British takeover rules from Nov. 26.” Hence, this deal gives Pfizer a few immune boosting medicines that are also a major focus for AstraZeneca.

Despite of failing to sign any contract with AstraZeneca, the company feels that signing cancer deal with German Merck will be beneficial for them.

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