Merck Agrees to Terms to Acquire Modifi Biosciences

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Merck announced that it has agreed to terms to acquire Modifi Biosciences, a Yale University spinout focused on developing cancer therapeutics targeting DNA repair defects. According to the company, the deal represents an interest in advancing Modifi's approach to treating refractory cancers. Modifi’s small molecules have shown promising results in pre-clinical studies, targeting cancer cells lacking O6-methylguanine methyl transferase, a key DNA repair protein. Modifi’s research was published by its academic founders in Science in 2022.¹

“In founding Modifi Biosciences, we sought to radically change the oncology treatment paradigm for cancer patients with glioblastoma and other tumors,” Ranjit S. Bindra, MD, PhD, co-founder, Modifi Biosciences, Harvey and Kate Cushing, professor, therapeutic radiology, Yale School of Medicine, scientific director, Yale Brain Tumor Center at Smilow Cancer Hospital, said in a press release. “We are honored to have Merck recognize the potential of our science, and as an oncology company, they are perfectly positioned to advance our innovations through clinical trials and commercialization.”

Under terms of the deal, Merck will acquire all outstanding shares of Modifi Biosciences for $30 million upfront. Additionally, Modifi shareholders will become eligible for up to $1.3 billion in potential milestone payments.¹

“DNA repair defects are a frequent hallmark of tumor cells and a major cause of resistance to cancer therapy,” said David Weinstock, VP, discovery oncology, Merck Research Laboratories, in the press release. “The talented Modifi Biosciences team has developed an innovative approach that we believe has potential for treating some of the most refractory cancer types.”

According to The University of Texas Health Science Center at San Antonio, 1% of the global population inherits defects in DNA repair, some of which are serious and lead to a much shorter lifespan, while some are not even noticed due to backup repair pathways.²

“We designed our small molecules to have the ability to uniquely overcome clinical resistance mechanisms that have been known for decades but until now have been non-actionable. Additionally, we created the molecules in a manner which allows them to be rapidly progressed from bench-to-bedside,” Seth Herzon, PhD, Modifi Biosciences co-founder, Milton Harris ’29 PhD professor of chemistry in, Faculty of Arts and Sciences, Yale, professor of pharmacology and therapeutic radiology, Yale School of Medicine, said in the press release.

References

1. Modifi Biosciences Acquired by Merck. GlobeNewswire. October 23, 2024. Accessed October 24, 2024. https://www.globenewswire.com/news-release/2024/10/23/2967652/0/en/Modifi-Biosciences-Acquired-by-Merck.html

2. The Future of Discovery in DNA Repair. UT Health San Antonio. Accessed October 25, 2024. https://magazines.uthscsa.edu/schools/2020/10/21/the-future-of-discovery-in-dna-repair/#:~:text=Nearly%201%20percent%20of%20the,also%20promote%20transformation%20to%20cancer.