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Merck completes acquisition of Harpoon Therapeutics

EditorAhmed Abdulazez Abdulkadir
Published 03/11/2024, 08:35 AM
Updated 03/11/2024, 08:35 AM
© Reuters.

RAHWAY, N.J. - Merck & Co., Inc. (NYSE: MRK), a global healthcare leader, announced today the successful acquisition of Harpoon Therapeutics, Inc. (Nasdaq: NASDAQ:HARP), integrating the biotechnology company as a wholly-owned subsidiary. This move eliminates Harpoon's common stock from public trading on the Nasdaq Stock Market.

The acquisition is part of Merck's strategic efforts to enhance its oncology pipeline, particularly in the realm of T-cell engagers, a promising area of cancer treatment. Harpoon's leading candidate, MK-6070 (previously known as HPN328), targets delta-like ligand 3 (DLL3) and is currently under evaluation in a Phase 1/2 clinical trial for certain advanced cancers, including small cell lung cancer (SCLC) and neuroendocrine tumors.

In March 2022, MK-6070 was granted Orphan Drug Designation by the U.S. Food and Drug Administration for the treatment of SCLC, reflecting the potential of this investigational therapy in a disease area with high unmet medical need.

Merck's acquisition also encompasses additional pipeline candidates, including HPN217, which is in Phase 1 clinical development for relapsed/refractory multiple myeloma, and several preclinical stage candidates such as HPN601, targeting epithelial cell adhesion molecule (EpCAM) for EpCAM expressing tumors.

Financially, the transaction is recorded as an asset acquisition, with Merck taking a non-tax deductible charge to R&D expense of approximately $650 million. The impact on Merck's full-year non-GAAP EPS is estimated at $0.26 per share, a figure that was accounted for in the company's full-year 2024 financial outlook issued on February 1, 2024.

Merck's commitment to oncology extends beyond this acquisition, with a broad research program exploring immuno-oncology across more than 30 tumor types. The company emphasizes the importance of accessibility to cancer medicines and is actively prioritizing the development of several oncology candidates.

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The information reported here is based on a press release statement from Merck & Co., Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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