Merck's TL1A Antibody MK-7240 Granted Clinical Trial Approval in China for Crohn’s Disease Following $10.8B Acquisition

According to the CDE official website, MSD's MK-7240 Injectable Concentrate and MK-7240 Injection have received tacit approval for clinical trials, with indications for moderate to severe active Crohn's disease. Public information indicates that MK-7240 is a TL1A antibody.

Image Source: CDE Official Website

Billions in M&A Proceeds
Targeting Autoimmune Diseases

TL1A (TNFSF15) is a member of the tumor necrosis factor family and can be expressed in various immune and non-immune cells, including monocytes, macrophages, synovial fibroblasts, and endothelial cells. TL1A interacts with its functional receptor, death domain receptor 3 (DR3), exhibiting the highest homology with TNFR1 among TNFRSF members. Studies have shown that TL1A is abnormally expressed in multiple autoimmune diseases, including rheumatoid arthritis, inflammatory bowel disease, and systemic lupus erythematosus. Therefore, drugs targeting TL1A have the potential to treat such diseases.

MK-7240 is a specific monoclonal antibody targeting TL1A, originally developed by Promethues Biosciences (hereinafter referred to as "Promethues"). In 2023, Merck & Co., Inc. acquired Promethues for approximately $10.8 billion, simultaneously obtaining its clinical pipeline, including the leading candidate drug MK-7240 (formerly "PRA023").

Image Source: MSD

Earlier this month, the clinical trial application for MK-7240 targeting ulcerative colitis was approved by the CDE. MSD is currently advancing its clinical trials both in and outside of China. This time, the indication for Crohn's disease has also received tacit approval for clinical trials from the CDE, and MSD may further study MK-7240 in China.

Acceleration of M&A Steps
Rich pipeline layout

MK-7240 is not the first potential drug that MSD has acquired through mergers and acquisitions. In the past year, MSD has accelerated its M&A activities, acquiring multiple clinical drugs with diverse indications, successfully enriching its own pipeline layout.

EyeBio

Just yesterday (May 29), Merck & Co., Inc. announced a total acquisition of approximately $3 billion for the emerging ophthalmology company EyeBio, gaining projects including the leading candidate drug Restoret (EYE103). Restoret is a tetravalent trispecific antibody intended for treating age-related macular degeneration (AMD), diabetic macular edema (DME), and other eye diseases. It is expected to enter a pivotal Phase 2b/3 trial for DME in the second half of this year.

Abceutics

In April this year, it was reported that MSD spent $208 million to acquire Abceutics, an ADC startup. The Abceutics team has designed a "Payload Binding Selectivity Enhancer" (PBSEs), which can bind to and neutralize free payloads to reduce the impact on healthy cells. PBSEs are able to reduce the toxic side effects of ADC drugs, thereby optimizing their selectivity and efficacy.

Harpoon

In January this year, MSD acquired Harpoon for $680 million, obtaining a series of promising antibody drugs, including the DLL3/CD3/Albumin tri-specific antibody, targeting BCMA, EpCAM, and others. According to publicly available data, HPN328 is a T-cell engager that is highly expressed in small cell lung cancer and neuroendocrine tumors.

Caraway

In November 2023, MSD acquired Caraway through a subsidiary in a transaction worth approximately $610 million. Through this deal, MSD gained access to multiple novel small-molecule therapies primarily targeting neurodegenerative and rare diseases. It is understood that the drugs developed by Caraway are related to several conditions, including Parkinson’s disease (PD), amyotrophic lateral sclerosis (ALS), and lysosomal storage disorders (LSD).

Conclusion

In 2023, MSD's R&D investment reached as high as 30.531 billion US dollars, approximately 50% of its revenue.

Recently, MSD raised its full-year sales forecast to $63.1 billion—$64.3 billion in the 2024 Q1 report. In 2024, by further accelerating the R&D of subsequent pipelines, MSD is expected to reap more potential blockbuster drugs.

Editor: Mu Mian

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