Merck Puts Big Bet on Experimental Cancer Drug Worth Up to $2.13 Billion

Merck, a leading pharmaceutical company, has made a significant investment in an experimental cancer drug developed by China's SciBrunch Therapeutics. The deal involves a $400 million upfront payment for exclusive worldwide rights to SPR2015, an oral drug candidate designed to inhibit KRAS G12D mutations involved in several cancers.

The agreement also includes milestone payments that could bring the total transaction value to $2.13 billion. However, these additional sums depend on the development and commercial progress of SPR2015.

Merck will handle development, manufacturing, and commercialization worldwide for the drug. While SPR2015 is currently at the preclinical stage, Merck has not announced a human trial start or a potential launch date. This means that the $2.13 billion figure is a ceiling on possible payments under the agreement.

The deal is part of Merck's effort to widen its oncology pipeline as patent expirations approach for Keytruda, its leading cancer medicine. The upfront payment will be recorded as a pretax charge in Merck's third-quarter 2026 results, amounting to about 13 cents per share.