Merck to Purchase Caraway Therapeutics For Over $600M

Merck & Co. has openly expressed its continuous pursuit of acquisitions, and currently, the prominent pharmaceutical company is concluding the year by expanding its preclinical pipeline with various initiatives targeting Parkinson’s disease and other areas.

As stated in a release, the New Jersey-based firm approved an investment that could go as far as $610 million, encompassing both upfront payments and potential milestone payments, for the acquisition of Caraway Therapeutics. However, the specific breakdown of the costs was not detailed in the release.

Initially named Rheostat Therapeutics, the company underwent incubation at SV Health Investors and the Dementia Discovery Fund before making its debut in 2018 with a series A funding of $23 million. Merck has been a supporter from the outset, co-leading the funding round with AbbVie.

In the subsequent year, the company rebranded as Caraway. Based in Cambridge, Massachusetts, Caraway positioned itself as a pioneer in the advanced scientific realm of activating autophagy, the cellular recycling process designed to eliminate toxic materials and faulty cellular components.

Following the rebranding, Caraway Therapeutics has maintained a relatively low profile. However, its website currently outlines four ongoing programs, all of which are yet to enter clinical trials. Among them are two distinct compounds aimed at modulating TRPML1, a transient receptor potential ion pathway known to be dysregulated in neurodegenerative illnesses. One of these compounds is under development for Parkinson’s disease linked with a mutated GBA gene, while the other focuses on non-central nervous system rare disorders.

Additionally, there is a TMEM175 modulator in the pipeline, intended to enhance the activity of this lysosomal potassium receptor in people with Parkinson’s or amyotrophic lateral sclerosis. Another potential Parkinson’s drug is still in the discovery stage.

Merck has significantly expanded its mergers and acquisitions portfolio in the current year, making a noteworthy entry with the acquisition of Prometheus Biosciences for almost $11 billion, which included a late-phase bowel disease drug. Additionally, the pharmaceutical giant made a substantial payment of $4 billion last month to buy three antibody-drug compounds from Daiichi Sankyo. With a focus on mapping out its post-Keytruda future, Merck’s executives have been transparent about the continuous imperative to enhance the pipeline throughout the year.

The company, alongside various pharmaceutical industry leaders, reported favorable financial outcomes in the third quarter. This led to an upward revision of its full-year sales projection for 2023, now ranging between $59.7 and $60.2 billion. The robust performance was attributed to the remarkable sales figures of Merck’s flagship cancer medication, Keytruda, the HPV vaccine Gardasil and the COVID-19 antiviral medication Lagevrio.

George Addona, Ph.D, SVP of preclinical development at Merck, stated, “Caraway’s multidisciplinary approach has yielded important progress in evaluating novel mechanisms of modulation of lysosomal function with potential for the treatment of progressive neurodegenerative diseases.”

Addona further expressed anticipation for utilizing their proficiency to further advance this initiative, aspiring to create essential disease-modifying treatments for these ailments.

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