- Merck ends co-development with Dr. Falk Pharma for MK-8690.
- Merck pays $150 million upfront to Falk.
- Merck records a pre-tax charge of $150 million in Q4 results.
- MK-8690 is an investigational anti-CD30 ligand monoclonal antibody.
Agreement Overview
Merck, through its subsidiary Prometheus BioSciences, has reached an agreement with Dr. Falk Pharma GmbH to discontinue their existing contract for co-development and co-commercialization of MK-8690. Merck will now assume full responsibility for the development of this investigational anti-CD30 ligand monoclonal antibody.
Financial Details
Under the terms of the agreement, Dr. Falk Pharma will receive a $150 million upfront payment from Merck. Additionally, Falk is eligible for a payment associated with a development milestone and royalties on sales in certain territories.
Impact on Financials
As a result of this transaction, Merck will record a pre-tax charge of $150 million, or approximately $0.05 per share, in both its GAAP and non-GAAP fourth quarter results.
Background
The original contract between Falk and Prometheus was signed in 2020, and Merck acquired Prometheus in 2023. MK-8690 is currently being evaluated in an early-stage clinical trial.
