Merck & Co. Acquires Immune Design for $300 Million to Bolster Tumor Immunotherapy Pipeline

On February 22, 2019, Arterial New Medicine (WeChat Official Account: biobeat1) learned that U.S. biopharmaceutical company Merck & Co. (MSD) announced the acquisition of Immune Design for $5.85 per share, with a total transaction value of $300 million. The price of $5.85 per share was approximately 300% higher than the average stock price of Immune Design over the 10 days preceding the announcement, making this acquisition a rare case with a premium as high as 300%.

Merck & Co. is a globally renowned pharmaceutical company, primarily engaged in the business of prescription drugs, vaccines, biologics, and animal health products. The company’s recent development strategy centers on expanding the indications for Keytruda (pembrolizumab, commonly known as “K-drug”) while maintaining extensive collaborations. Merck’s acquisition of Immune Design and its cancer vaccine platform serves to support this strategic initiative.

Keytruda is the first drug approved by the U.S. Food and Drug Administration (FDA) that blocks a cellular pathway known as PD-1. PD-1 and PD-L1 are two types of proteins found on human cells. PD-1 is constitutively present on T cells, a type of immune cell, where it prevents T cells from attacking other cells in the body. PD-L1 is a protein attached to the surface of certain cells, including both normal and cancerous cells, and it helps these cells evade attack by immune cells. Many cancer cells express high levels of PD-L1, thereby escaping detection and destruction by the immune system. Immunotherapies targeting PD-1 or PD-L1 can help the body eliminate hidden cancer cells, and Keytruda is an immunotherapy that specifically targets PD-1.

Immune Design’s proprietary technology platforms, GLAAS and ZVex, are designed to develop vaccines and other therapeutics to combat cancer and other chronic diseases. The former utilizes a small-molecule TLR4 agonist called GLA to enhance antigen presentation by dendritic cells; in the context of tumor therapy, it can be used in combination with tumor antigens. A formulation of GLA known as G100 can also be administered alone via intratumoral injection to boost innate immunity and facilitate tumor clearance. ZVex is a viral vector delivery technology that delivers tumor antigen RNA to dendritic cells in the skin, thereby enabling T cells to attack and kill tumors. Immune Design’s GLAAS and ZVex technology platforms have contributed to the advancement of Merck & Co.’s immunotherapy and vaccine divisions.

Dr. Roger M. Perlmutter, President of Merck Research Laboratories, stated, “The scientists at Immune Design have established a unique approach to tumor immunology research and developed an adjuvant system that enhances the preventive efficacy of vaccines against infection, thereby significantly improving vaccine development. This acquisition will further expand Merck’s research and development initiatives leveraging the power of the immune system to prevent and treat diseases.”

Immune Design (IMDZ), founded in Seattle, USA, in 2008, is a biotechnology company specializing in immune design. The company leverages breakthrough technologies to develop safe and effective vaccines and therapeutics, with a focus on the prevention and treatment of infectious diseases.