Merck has entered an exclusive global license agreement with LaNova Medicines to develop, manufacture, and commercialize LM-299, an investigational anti-PD-1/VEGF bispecific antibody.
Under the deal, LaNova will receive an upfront payment of $588 million, with the potential for an additional $2.7 billion based on development and commercialization milestones.
LM-299 targets PD-1 and VEGF pathways, inhibiting immune checkpoints and angiogenesis in cancer treatment. A Phase 1 clinical trial for LM-299 is currently underway in China.
The transaction, pending regulatory approval, is expected to close in the fourth quarter of 2024. Merck will record the initial payment as a pre-tax charge in the closing quarter.