Pfizer, Merck to jointly develop and commercialize new cancer treatments

Both the firms will explore the therapeutic potential of this new anti-PD-L1 antibody as a single agent as well as in various combinations with their broad portfolio of approved and investigational oncology therapies.

As part of the deal, Merck will receive an upfront payment of $850m and is also eligible to receive regulatory and commercial milestone payments up to around $2bn.

The two firms will jointly fund all development and commercialization costs and all revenues secured from selling any anti-PD-L1 or anti-PD-1 products generated from this deal will be shared equally.

Pfizer group president Vaccines, Oncology and Consumer Healthcare Businesses Albert Bourla said: "This global alliance enables Pfizer and Merck KGaA to join forces and combine complementary strengths with the goal of meeting the needs of patients with multiple types of cancer.

"Combining this promising anti-PD-L1 antibody with Pfizer’s extensive portfolio of small molecules and antibodies, provides an opportunity to potentially broaden the use of immunotherapy for patients with cancer and rapidly expand our oncology business.

"In addition, this alliance enables us to significantly accelerate the timeframe of our development programs and move into the first wave of potential immuno-oncology based treatment regimens."

Building on the ongoing Phase I program that has treated more than 550 patients, the two firms will collaborate on about 20 high priority immuno-oncology clinical development programs scheduled to start next year.

In addition to the PD-L1 programs, the two organizations will also combine resources and expertise to advance Pfizer’s anti-PD-1 antibody into Phase I trials.

The companies have also agreed to co-promote Pfizer’s Xalkori in the US and several other key markets.

Image: Pfizer world headquarters. Photo: courtesy of Jim.henderson.