December 18, 2014
By Mark Terry, BioSpace.com Breaking News Staff
Kenilworth, N.J.-based Merck & Co. announced today that it had acquired Swiss-based OncoEthix for a total of $375 million. There will be an upfront payment of up to $110 million, with additional milestone payments of up to $265 million based on various clinical and regulatory milestones.
OncoEthix is a privately held biotech company focused on developing a portfolio of oncology drug candidates. OncoEthix’s lead product is OTX015, an investigational orally administered synthetic small molecule targeted to BET bromodomain proteins 2/3/4. BET proteins play a significant role in regulation cancer cell growth.
“We are delighted that OTX015 will now be in the hands of Merck, a company with a successful track record of developing cutting-edge therapies,” said Bertrand Damour, CEO of OncoEthix in a statement. “The acquisition underlines the promise that OTX015 has shown in the treatment of hematological malignancies, and the potential it has for the treatment of advanced solid tumors. We are confident that our transaction with Merck best positions OTX015 to be developed to its full potential in areas of high unmet medical need.”
Merck announced earlier in this month that it was acquiring Lexington, Mass.-based Cubist Pharmaceuticals, Inc. for about $8.4 billion. That deal is targeted for $102 per share in cash and $1.1 billion in net debt, for a total transaction value of $9.5 billion.
Cubist’s lead product is CUBICIN, the only antibiotic approved for once-a-day therapy for S. aureus bacteremia and complicated skin and skin structure infections (cSSSI). It also has a compound, ZERBAXA, a treatment for Gram-positive and Gram-negative multi-drug resistant infections, currently awaiting approval by the U.S. Food and Drug Administration.
With the acquisition of OncoEthix, Merck will enhance its oncology focus. OTX015 is currently in Phase 1b studies for the treatment of hematological malignancies and advanced solid tumors.
“Oncology is a priority area of focus for Merck and the acquisition of OncoEthix supports our strategy to prioritize the development of innovative molecules with the potential to improve the treatment of advanced cancers,” said Merck Research Laboratories senior VP of global clinical development, Roy Baynes, in a statement. “The potential first-in-class oral BET inhibitor, OTX015, has demonstrated early promising activity in hematological cancers and strategically complements our broad immuno-oncology development program.”
