$1.3 Billion! Merck Acquires a Biotech Company

On October 23, Merck announced that it had spent up to $1.3 billion to acquire Modifi Biosciences, securing the rights to its experimental cancer therapy.

As part of the deal, Modifi is eligible to receive up to $1.3 billion in potential milestone payments. Merck has made an upfront payment of $30 millionto acquire a new class of treatment, KL-50, which is being developed to treat hard-to-treat brain tumors, including malignant gliomas.

Harvey and Kate Cushing, M.D., co-founder of Modifi Biosciences, professor of therapeutic radiology at Yale School of Medicine, and scientific director of Yale's Brain Tumor Center, said, "When we founded Modifi Biosciences, we sought to fundamentally change the treatment paradigm for patients with glioblastoma and other tumor cancers. We are honored that Merck has recognized the potential of our science. As an oncology company, they are fully capable of advancing our innovation through clinical trials and commercialization."

The research conducted by Modifi Biosciences has been validated by preliminary work published by its academic founders in Science magazine in 2022 and by subsequent compelling preclinical data across various tumor models, including patient-derived xenograft models of gliomas and other cancers with intrinsic DNA repair defects.

David Weinstock, M.D., vice president of oncology discovery at Merck Research Laboratories, stated, "DNA repair defects are common hallmarks of tumor cells and are major causes of resistance to cancer therapies. The outstanding team at Modifi Biosciences has developed an innovative approach that we believe has the potential to treat some of the most difficult-to-treat cancer types."

Modifi Biosciences, founded in 2021, is a preclinical-stage company developing cancer therapies designed to selectively kill cancer cells by modifying cancer DNA. To date, Modifi has raised $10.7 million in seed funding, backed by investors including BrightEdge, the investment arm of the American Cancer Society.