GlaxoSmithKline and Merck have partnered to develop and commercialize a cancer immunotherapy treatment in a deal that could be valued at $4.2 billion, Bloomberg reports.
Glaxo will pay Merck for access to a promising immune-oncology treatment. Under the deal, Merck will receive an upfront payment of $341 million for the experimental drug. Merck also will be eligible to receive up to $569 million in development payments and $3.3 billion upon the drug's approval.
The therapy at the center of Merck's agreement with Glaxo is called M7824, and it is currently in a trial to test efficacy against Keytruda for lung cancer.
Both Merck and Glaxo will be involved the development and commercialization of M7824. All profits and costs will be shared equally.
Read the full report here.