**Merck Secures Global Rights to LaNova's Promising Cancer Drug for $588M Upfront**

In a strategic move to reinforce its position in the immuno-oncology sector, Merck & Co. has committed $588 million upfront to acquire global rights to LaNova Medicines' PD-1xVEGF bispecific antibody. The deal, which includes potential milestone payments up to $2.7 billion, signifies Merck's anticipation of advancing this innovative cancer treatment.

Interest in PD-1xVEGF bispecific antibodies surged dramatically in September following a noteworthy event where Akeso and Summit Therapeutics' ivonescimab outperformed Merck's Keytruda in a head-to-head trial. Although the trial, conducted in China, had limitations and did not utilize the standard-of-care comparator, its results sent ripples through the immuno-oncology community.

Keytruda, a blockbuster drug that generated $25 billion in revenue for Merck last year, faces potential disruption by these emerging bispecifics. As these new treatments begin to mark their territory, Merck is strategically positioning itself to retain a significant share of the market. By securing this deal with LaNova Medicines, Merck aims to mitigate the risk of losing its dominance.

LaNova Medicines, a Chinese company, recently made headlines with the announcement of a phase 1 advanced solid tumor trial of its bispecific antibody, LM-299, in China. Additionally, LaNova raised $42 million in a financing round, showcasing its growing prominence in the sector. The company's partnership with Merck highlights its expanding influence in the biotech arena.

The enthusiasm surrounding PD-1xVEGF bispecific antibodies is exemplified by the financial commitments from big players in the industry. Just a year ago, BioNTech paid $55 million upfront for ex-China rights to a PD-L1xVEGF bispecific already in phase 2. In comparison, Merck's investment, over ten times that amount for a molecule just entering human trials, underscores the high stakes and accelerated interest.

At a recent UBS event, Jannie Oosthuizen, president of Merck Human Health U.S., discussed the potential and challenges of PD-(L)1xVEGF bispecifics. Oosthuizen acknowledged Merck’s active monitoring of the area and raised questions about the mechanism, especially given the observed toxicity when combining Keytruda with VEGF inhibitor Lenvima. However, Merck is poised to gain direct insights into bispecific performance through this new partnership.

While Merck has yet to disclose specific development plans for LM-299, the company emphasized its commitment to advancing the asset with speed and precision. As competitors in the field move forward, Merck's history with Keytruda showcases its capability to make impactful comebacks and maintain leadership in the fiercely competitive checkpoint inhibitor market.