Exciting Acquisition: Merck Acquires Modifi Biosciences in a $1.3 Billion Deal

In a strategic move to strengthen its oncology portfolio, Merck has completed the acquisition of Modifi Biosciences, a company specializing in the development of cancer treatments. The deal, potentially worth up to $1.3 billion, includes an initial payment of $30 million by the pharmaceutical giant.

Based in New Haven, Connecticut, Modifi Biosciences is in the preclinical stage of developing a new class of cancer treatments known as KL-50. These therapies are being investigated for their potential to treat challenging brain tumors such as glioblastomas, aiming to selectively target and destroy cancer cells by modifying cancer DNA.

This acquisition aligns with Merck's strategy to expand its cancer treatment portfolio, as it anticipates losing patent protection for its successful cancer immunotherapy, Keytruda, by the end of the decade. Modifi, having raised $10.7 million in seed funding, stands to receive milestone payments that could bring the total value of the deal to $1.3 billion.

In addition to financial investments, Modifi has garnered support from significant backers such as BrightEdge, the investment arm of the American Cancer Society.

Merck's interest in innovative cancer therapies was highlighted last year when it entered a $5.5 billion collaboration with Japan’s Daiichi Sankyo. This partnership focuses on developing three targeted cancer treatments, known as antibody-drug conjugates, that aim to minimize damage to healthy tissue while attacking tumor cells.

With this latest acquisition, Merck continues to demonstrate its commitment to advancing cancer research and providing new treatment options for patients facing some of the most difficult-to-treat forms of the disease.