Merck continues to diversify its cancer efforts as the clock ticks down on Keytruda’s patent, picking up rights to a preclinical oncology asset in a deal that could exceed $2 billion.
Merck is dining internationally, paying $400 million upfront to license a preclinical molecular glue asset from China biotech SciBrunch Therapeutics.
The deal grants Merck exclusive global rights to develop, manufacture and commercialize SciBrunch’s SPR2015, an oral KRAS inhibitor, according to a Monday release. SciBrunch could also add certain milestone payments to its plate, with the deal potentially totaling $2.13 billion.
The transaction has already closed, with Merck recording a pre-tax charge of $400 million—or about 13 cents per share—related to the deal in Q3 of this year.
SciBrunch’s SPR2015 is designed to be a potent and selective molecular glue inhibiting KRAS G12D (ON), a common KRAS mutation seen in fast-growing cancers, including colorectal cancer. In preclinical models, the molecular glue “demonstrated compelling antitumor efficacy as a monotherapy,” according to the companies.
SPR2015 is expected to enter human trials by the end of this year, according to a poster presentation shared in April at the 2026 American Association for Cancer Research Annual Meeting.
“Evidence continues to accumulate for the therapeutic potential of targeting the KRAS pathway, a well-characterized factor in tumor cell growth,” George Addona, Merck’s senior vice president of discovery, preclinical development and translational medicine, said in a prepared statement. “This agreement complements and diversifies our expanding pipeline of precision targeted candidates with SPR2015, a potent engineered inhibitor for one of the most prevalent mutant forms of KRAS found in human cancers.”
SciBrunch was founded by professor and chemist Yang Zhang and entrepreneur Tao Hu in late 2024. The biotech is currently running a Phase 1/2 trial of the PARP1 inhibitor SPR1020. To date, the company has raised $65 million, according to its website, with the Merck deal marking its first publicly announced partnership.
Monday’s announcement coincides with the news that Merck and partner Daiichi Sankyo have withdrawn an accelerated approval request for the antibody-drug conjugate (ADC) ifinatamab deruxtecan (I-DXd) after the FDA said the data package didn’t meet the criteria to support such a filing.
The partners were proposing I-DXd to treat extensive-stage small cell lung cancer (ES-SCLC) that has progressed on or after platinum-based chemotherapy. Merck and Daiichi continue to study I-DXd in a Phase 3 trial for the indication, which could be used for a future regulatory filing, according to Daiichi.
“This is an incremental negative setback” for Merck, analysts at RBC Capital Markets wrote on Sunday, contending that investor focus remains largely on a Kelun Biotech–partnered TROP2-targeting ADC in non-small cell lung cancer.
All of this, of course, comes as Merck races to bolster its prospects as the patent cliff looms for PD-1 blockbuster Keytruda in 2028.
