Merck Completes Global Exclusive License Agreement for Investigational PD-1/VEGF Bispecific Antibody LM-299

Roway, New Jersey, USA, December 20, 2024– MSD (NYSE: MRK, the corporate name of Merck & Co., Inc., located in Rahway, New Jersey, U.S.) today announced the completion of a global exclusive licensing agreement with Lixin Pharmaceutical Technology (Shanghai) Co., Ltd. for LM-299, a novel investigational PD-1/VEGF bispecific antibody.PublicationMSD will develop, manufacture, and commercialize LM-299.

       MSD will incur pre-tax expenses of $588 million (or approximately $0.18 per share) related to the upfront payment, which will be included in the 2024 fourth-quarter financial data under both GAAP and non-GAAP standards. Based on the technology transfer, development, approval, and commercialization progress of LM-299 across multiple indications, Lixin Pharmaceutical Technology (Shanghai) Co., Ltd. is also eligible to receive milestone payments of up to $2.7 billion, including a $300 million payment expected upon completion of the technology transfer in 2025.

AboutLM-299

       LM-299 is an investigational bispecific antibody targeting PD-1 (Programmed Cell Death Protein 1) and VEGF (Vascular Endothelial Growth Factor). This innovative therapeutic approach is designed to block both the PD-1/PD-L1 immune checkpoint and the VEGF/VEGFR signaling pathways, thereby achieving a synergistic anti-tumor mechanism based on "tumor immunity + anti-angiogenesis." LM-299 features a differentiated molecular design, comprising an anti-VEGF antibody linked to two C-terminal single-domain anti-PD-1 antibodies. The Phase I clinical trial of LM-299 is currently recruiting patients in China.

About MSD

       At MSD (the corporate name of Merck & Co., Inc. in the United States, located in Rahway, New Jersey), we unite in pursuit of a shared mission: harnessing the power of cutting-edge science to save lives and improve health worldwide. For over 130 years, we have brought hope to humanity through the development of vital medicines and vaccines. We are committed to being a leading research-intensive biopharmaceutical company — today, we stand at the forefront of innovation, delivering transformative solutions to advance the prevention and treatment of diseases in humans and animals. We have built a diverse and inclusive global workforce, operating responsibly every day to ensure a safe, sustainable, and healthy future for all people and communities. For more information, please visitwww.msd.com`, and follow us on X (formerly Twitter), LinkedIn, and YouTube platforms.`

MSD Forward-Looking Statements

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