Merck (NYSE: MRK) has completed the acquisition of Harpoon Therapeutics, Inc. (Nasdaq: HARP), enhancing its oncology pipeline. Harpoon is now a wholly-owned subsidiary, with its stock delisted. Merck aims to advance novel T-cell engagers like MK-6070, targeting DLL3, for small cell lung cancer. The transaction, valued at $650 million, aligns with Merck’s commitment to oncology innovation and accessibility.
Merck & Co., known as MSD outside of North America, has successfully finalized its acquisition of Harpoon Therapeutics, Inc. The completion of this acquisition sees Harpoon becoming a fully owned subsidiary of Merck, with its common stock no longer being publicly traded on the Nasdaq Stock Market. This strategic move underscores Merck’s ongoing commitment to bolstering its oncology pipeline with innovative therapies aimed at addressing the needs of cancer patients globally.
Dr. Dean Y. Li, President of Merck Research Laboratories, emphasized the significance of this acquisition in advancing Merck’s efforts in oncology. He stated, “We continue to augment and diversify our oncology pipeline with innovative approaches to help people with cancer worldwide.” Dr. Li expressed enthusiasm about incorporating Harpoon’s expertise into Merck’s framework and collaborating to advance a novel portfolio of T-cell engagers, notably highlighting Harpoon’s lead candidate, MK-6070 (formerly known as HPN328).
MK-6070 stands out as a promising T-cell engager designed to target delta-like ligand 3 (DLL3), an inhibitory canonical Notch ligand found in high levels in small cell lung cancer (SCLC) and neuroendocrine tumors. Currently undergoing evaluation in a Phase 1/2 clinical trial (NCT04471727), MK-6070’s safety, tolerability, and pharmacokinetics are being assessed as monotherapy in certain patients with advanced cancers associated with DLL3 expression. Additionally, the study is investigating MK-6070’s efficacy in combination with atezolizumab in specific patients with SCLC. In recognition of its potential, the U.S. Food and Drug Administration (FDA) granted Orphan Drug Designation to MK-6070 for the treatment of SCLC in March 2022.
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In addition to MK-6070, Merck’s newly enriched pipeline includes HPN217, another T-cell engager targeting B-cell maturation antigen (BCMA). HPN217 is currently in Phase 1 clinical development for treating patients with relapsed/refractory multiple myeloma. Furthermore, Merck’s pipeline comprises several preclinical stage candidates, notably HPN601, a conditionally activated therapy targeting epithelial cell adhesion molecule (EpCAM) for certain patients with EpCAM expressing tumors.
Transaction Details: Merck executed the acquisition of Harpoon by acquiring all outstanding shares through a subsidiary, adhering to the terms of the merger agreement. This transaction is being accounted for as an asset acquisition, with Merck recording a non-tax deductible charge to research and development (R&D) expenses totaling approximately $650 million. The impact of this transaction on expected full-year non-GAAP EPS stands at around $0.26 per share, aligning with Merck’s full-year 2024 financial outlook issued on February 1, 2024.
Merck’s Commitment to Oncology: At Merck, the quest to transform scientific breakthroughs into innovative oncology treatments is a driving force. The company is dedicated to offering new hope to cancer patients globally, with a steadfast commitment to enhancing accessibility to its cancer medicines. Merck’s focus on oncology is exemplified by one of the most expansive immuno-oncology development programs in the industry, spanning over 30 tumor types. Moreover, Merck continually strengthens its portfolio through strategic acquisitions, prioritizing the development of several promising oncology candidates poised to advance the treatment landscape for advanced cancers.