Merck Pays Up to $2.13 Billion for Rights to Chinese KRAS Inhibitor

Pharmaceutical giant Merck has inked a deal worth up to $2.13 billion with Chinese biotech company SciBrunch Therapeutics. As part of the agreement, Merck will gain exclusive global rights to develop and commercialize SPR2015, an oral KRAS inhibitor that is currently in preclinical stages.

SciBrunch's SPR2015 has shown promising results in preclinical models, demonstrating antitumor efficacy as a monotherapy. The asset targets the KRAS G12D mutation, which is common in fast-growing cancers such as colorectal cancer.

The deal includes an upfront payment of $400 million and potential milestone payments that could bring the total value to $2.13 billion. Merck has already recorded a pre-tax charge of $400 million related to the deal in its Q3 financials.