Waltham, Massachusetts–based Skyhawk Therapeutics has been collecting collaborations with larger companies in spades since launching in 2018.
Merck KGaA is broadening its neuro pipeline with a collaboration with Skyhawk Therapeutics aimed at developing new small molecule RNA-targeting drugs. Though financial details were not disclosed, the deal could be worth as much as $2 billion.
According to Monday’s announcement, the Waltham, Massachusetts–based biotech would design small molecules against RNA targets selected by Merck. The indications were not announced, with the companies simply stating the targets would be “in select neurological indications with high unmet medical need,” according to the statement.
Merck will dole out milestone payments as well as tiered royalties on any potential sales on molecules developed in the deal. Skyhawk will lead the discovery and preclinical efforts, after which Merck will pick up development and commercialization efforts for molecules it chooses.
Skyhawk’s pipeline is based on small molecule drugs that influence RNA expression inside cells. The deal will see the biotech use its SkySTAR platform—Skyhawk Small molecule Therapeutics for Alternative splicing of RNA—to develop molecules to alter splicing and gene expression at the RNA level. The biotech’s pipeline is focused on neurology and oncology targets, with a Huntington’s drug in Phase I and another for multiple myeloma and non-Hodgkin’s lymphoma, both drugs being splicing modulators.
The collaboration is the latest big ticket agreement Skyhawk has picked up from a larger company in recent years. In April 2024, the biotech struck a $1.8 billion pact with French pharma Ipsen, also in neurological indications. The startup has also signed a $2.2 billion deal with Vertex that includes a $40 million upfront payment as well as two deals with Merck & Co.
Skyhawk launched in January 2018 with a rather modest $8 million in financing.
Merck KGaA has been relatively quiet on the dealmaking front this year, with the only big splash so far being the $3.9 billion acquisition of Connecticut-based SpringWorks Therapeutics in April. The only other deal the company has made was the acquisition of HUB Organoids B.V., a next-gen drug testing company, for an undisclosed sum announced in early January.
