Merck to Acquire Harpoon Therapeutics In a Deal Worth $680M

With the agreement to shell out $680 million for Harpoon Therapeutics and its ongoing development of T-cell engagers, Merck & Co. has taken the lead in pursuing the acquisition target. By committing to this agreement, Merck will be able to gain ownership of medication candidates that will allow it to grow its cancer portfolio and provide options to compensate for the imminent loss of exclusivity for Keytruda.

Dr. Yean Y. Li, President of Merck Research Labs, remarked, “At Merck, we continue to enhance our oncology pipeline through strategic acquisitions that complement our current portfolio and advance breakthrough science to help address the needs of people with cancer worldwide.”

The premise that Harpoon’s trispecific T-cell platform may improve upon bispecifics and cell treatments has been the foundation around which the company has built its business. 

Although the molecules are diminutive compared to bispecific antibodies, they contain human serum albumin in addition to domains that connect cancer cells and immune cells. This allows them to have a longer half life. The tiny size might increase tissue penetration, which would enhance the effectiveness of the treatment in solid tumors; nonetheless, Harpoon has had lows ever since it went public in 2019. 

An examination of early-phase data on Merck’s top candidate HPN328 rekindled interest in the stock, which resulted in the company’s decision to acquire the biotechnology company at a price that is more than 100% higher than its closing price on Friday. The anti-DLL3 candidate that Harpoon distributed had a response rate of 35% among those who received it.

Both neuroendocrine tumors and small cell lung cancer (SCLC) have been shown to have an elevated expression of DLL3. The demand for improved medications is present in both indications. Merck was successful in obtaining fast approval for Keytruda with SCLC; however, the indication was eventually withdrawn. 

Although there are still alternative checkpoint inhibitors available, the median overall survival is only increased by a few months by using them. Chemotherapy is the sole treatment option available to people who have various types of neuroendocrine tumors.

The anti-DLL3 candidate that Harpoon is evaluating, HPN328, is being tested both as a monotherapy and in conjunction with Roche’s Tecentriq, which is a competitor to Merck’s Keytruda vaccine. Following the announcement of phase 2 findings for Amgen’s competing DLL3 candidate, tarlatamab, the unveiling of fresh HPN328 data at the European Society of Medical Oncology Congress in the previous year was somewhat outweighed.

In addition to providing validation of DLL3 T-cell engagers, the study conducted by Amgen also established a benchmark for businesses that wish to compete with it in the existing market. The task is one that Merck is willing to take on, since the company intends to mix HPN328 with other pipeline possibilities. 

Through the acquisition of Harpoon, Merck will also get ownership of T-cell engagers that are designed to help individuals who express BCMA and EpCAM respectively. Due to the fact that other firms are chasing the targets, the projects represent yet another examination of Harpoon’s faith in its platform. In prior transactions with Janux Therapeutics and Dragonfly Therapeutics, Merck has demonstrated a fascination in immune engagers demonstrating their potential.

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