WATERTOWN, Mass. - C4 Therapeutics, Inc. (NASDAQ:CCCC), a biopharmaceutical company, announced today a collaboration with Merck KGaA, Darmstadt, Germany, to develop two targeted protein degraders aimed at treating cancer. C4T will receive a $16 million upfront payment and is eligible for up to approximately $740 million in milestone payments, plus future royalties.
The partnership leverages C4T's expertise in targeted protein degradation, a method that could transform cancer treatment by using the body's natural processes to eliminate disease-causing proteins. Under the agreement, C4T will receive funding from Merck KGaA for discovery research efforts, while Merck KGaA will take charge of clinical development and commercialization of any resulting drug candidates.
C4T's proprietary TORPEDO® platform will be utilized to discover degraders targeting specific oncogenic proteins identified in the collaboration. If successful, C4T stands to gain mid-single to low-double digit tiered royalties on future sales for each program.
Andrew Hirsch, president and CEO of C4 Therapeutics, expressed enthusiasm about the partnership's potential to advance their internal oncology pipeline. Paul Lyne, Head of Research Unit Oncology at Merck KGaA, highlighted the dynamic field of targeted protein degradation and the shared goal of improving patient outcomes.
This collaboration adds to Merck KGaA's portfolio of targeted protein degradation projects and underscores C4T's commitment to creating medicines for unmet medical needs.
The information in this article is based on a press release statement from C4 Therapeutics.
InvestingPro Insights
As C4 Therapeutics (C4T) embarks on its ambitious collaboration with Merck KGaA, investors are closely monitoring the latter's financial health and market performance. Merck & Co., Inc. (NYSE:MRK), known as MSD outside the United States and Canada, reflects a robust market position with a current Market Cap of 316.1 billion USD and a Price / Book ratio for the last twelve months as of Q4 2023 standing at 8.43, indicating a strong valuation relative to the company's net assets.
With a Gross Profit Margin of 73.53% in the same period, Merck & Co. showcases its ability to retain a significant portion of its sales revenue after accounting for the cost of goods sold, which is crucial for its financial stability and capacity to invest in research and development, such as the new partnership with C4T. Furthermore, the company's stock has experienced a strong return over the last three months, with a 20.85% total price return, signaling positive market sentiment and investor confidence.
Among the numerous InvestingPro Tips for Merck & Co., two particularly stand out in the context of this new collaboration. First, Merck & Co. has raised its dividend for 13 consecutive years, demonstrating a commitment to shareholder value that could be further bolstered by the success of the C4T partnership. Second, the company is a prominent player in the Pharmaceuticals industry, which might provide C4T with a strong commercialization platform for any successful drug candidates resulting from their joint efforts. For those interested in deeper analysis and additional tips, InvestingPro offers 14 more tips for Merck & Co., accessible at https://www.investing.com/pro/MRK. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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