Merck Reaches Deal with LaNova Medicines to Develop Novel Treatment for Programmed Cell Death Protein-1 and Vascular Endothelial Growth Factor

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Merck and LaNova Medicines have agreed to terms on a deal in which LaNova will grant Merck licensing rights to develop, manufacture, and commercialize LM-299, an investigational bispecific antibody that targets both programmed cell death protein-1 (PD-1) and vascular endothelial growth factor (VEGF). According to Merck, the deal is part of its goal to expand its oncology portfolio through treatments with advanced mechanisms of action.¹

“At Merck, we continue to assemble a strong and diversified oncology pipeline spanning differentiated mechanisms and multiple modalities,” said Dean Y. Li, president, Merck Research Laboratories, in a press release. “This agreement adds to Merck’s growing oncology pipeline, and we look forward to advancing LM-299 with speed and rigor for patients in need.”

Under terms of the deal, LaNova will receive an upfront payment of $588 million, with the potential to receive up to $2.7 billion in milestone payments associated with the technology transfer, development, regulatory approval, and commercialization of LM-299 across multiple indications. The transaction, anticipated to close by the end of the year, is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.¹

Last month, La Nova announced the start of a Phase I trial for LM-299 for advanced solid tumors amid promising preclinical results. According to the preclinical data, LM-299 demonstrated strong inhibition of tumor growth in mice. In addition to this trial, the company intends to initiate another Phase I trial in the United States with a goal of submitting an Investigational New Drug application to the FDA by the end of the year.

Additionally, La Nova announced the completion of a $42 million Series C1 financing period. The financing was led by Sino Pharmaceuticals and consisted of investors such as Pudong Innovation Investment, Zhangjiang Haoheng, Qiming Venture Partners, and Shanghai Healthcare Capital. According to the company, the proceeds are expected to fund lead candidates such as LM-302 for gastric cancers, LM-108 for multiple solid tumors, and LM-299 for patients with advanced solid tumors, all in China. Starting next year, LaNova will begin trials for LM-302 and LM-108 in the United States.²

“This agreement with Merck is a strong testament to the hard work of LaNova’s talented team of scientists who created LM-299,” said Crystal Qin, founder, chairwoman, CEO, LaNova, in the press release. “Through internal R&D innovation and strategic external partnerships, LaNova is committed to advancing its pipeline to benefit patients worldwide.”

Currently, LaNova’s pipeline includes six clinical-stage assets and over 10 clinical programs.²

References

1. Merck Enters into Exclusive Global License for LM-299, An Investigational Anti-PD-1/VEGF Bispecific Antibody from LaNova Medicines Ltd. Merck. November 14, 2024. Accessed November 14, 2024. https://www.merck.com/news/merck-enters-into-exclusive-global-license-for-lm-299-an-investigational-anti-pd-1-vegf-bispecific-antibody-from-lanova-medicines-ltd/

2. LaNova Medicines Announces Initiation of Phase 1 Clinical Trial of Anti-PD-1/VEGF Bispecific Antibody LM-299 and Completion of $42 Million Series C1 Financing. PR Newswire. LaNova Medicines. October 18, 2024. Accessed November 14, 2024. https://www.prnewswire.com/news-releases/lanova-medicines-announces-initiation-of-phase-1-clinical-trial-of-anti-pd-1vegf-bispecific-antibody-lm-299-and-completion-of-42-million-series-c1-financing-302280157.html