Rio Tinto's Resolution Copper Mine: U.S. Smelting Challenges and Global Operations Update 
Explosion and Fire Erupt at Valero Oil Refinery in Port Arthur, Texas 
Lynas Rare Earths Signs Vietnam Deal with LS Eco Energy to Boost Magnet Metal Production 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
SpaceX IPO Filing Expected This Week as Valuation Could Surpass $75 Billion 
OpenAI Pulls the Plug on Sora, Ending $1 Billion Disney Partnership 
Air Canada Express Crash at LaGuardia: Controller Distracted by Prior Emergency 
Merck Raises Growth Outlook, Targets $70 Billion Revenue From New Drugs by Mid-2030s 
Innate Pharma Reports 55% Revenue Drop and €49.2M Net Loss for 2025 
U.S. Officials Express Optimism Over New CDC Director Selection Amid Vaccine Policy Turmoil 
Golden Dome Missile Defense: Anduril and Palantir Join Forces on Trump's $185B Space Shield 
Novo Nordisk Launches Once-Daily Wegovy Pill in U.S. at Competitive Pricing 
RFK Jr. Overhauls Federal Autism Panel, Sparking Medical Community Backlash 
Citi Names Eric Farina and Rob Cascarino to Lead Global Infrastructure Financing Group 
Goldman Sachs Raises ECB Rate Hike Forecast Amid Persistent Energy-Driven Inflation 
Federal Appeals Court Blocks Trump-Era Hospital Drug Rebate Plan 
Drugmaker Merck has partnered with Daiichi Sankyo, under which it will pay $5.5 billion to develop three candidate cancer drugs jointly. This deal could be worth up to $22 billion for Daiichi Sankyo, depending on the success of the therapies.
Shares of Daiichi Sankyo soared by 14.4% in Tokyo, marking their largest gain in over a year. Merck also saw a rise of 1.6% in morning trading.
Ambitious Revenue Target for Daiichi Sankyo's Oncology Business
According to Reuters, Daiichi Sankyo has set a revenue target of at least 900 billion yen ($6 billion) for its oncology business by the fiscal year ending March 31, 2026. This would represent an impressive five-fold increase over three years.
Investopedia noted that the three-drug candidates to be developed with Merck fall into the antibody-drug conjugates (ADC) class, with various stages of clinical development for treating multiple solid cancer tumors. Unlike conventional chemotherapy, ADCs are designed to target cancer cells, minimizing damage to healthy cells specifically.
"One of the changes in the external environment is intensifying competition in ADC development," Daiichi Sankyo CEO Sunao Manabe said, describing the company's decision to seek a partner.
Promising Commercial Revenue Potential
The drug candidates - patritumab deruxtecan, ifinatamab deruxtecan, and raludotatug deruxtecan - hold significant worldwide commercial revenue potential for both companies by the mid-2030s, according to Merck and Daiichi Sankyo.
Under the agreement, Merck and Daiichi Sankyo will jointly develop and potentially commercialize the drug candidates globally, except in Japan, where Daiichi Sankyo will retain exclusive rights. Daiichi Sankyo will be responsible for manufacturing and supply.
Merck Gains Access to Daiichi Sankyo's Expertise in the ADC Space
The partnership allows Merck to tap into Daiichi Sankyo's leadership status in the ADC field. Analysts believe this collaboration will strengthen Merck's cancer drug portfolio, particularly as its top-selling Keytruda faces patent expiration at the end of the decade.
In return for the collaboration, Merck will make an upfront payment of $4 billion to Daiichi Sankyo, followed by $1.5 billion in continuation payments over the next two years. Additionally, Merck may pay up to $16.5 billion based on future sales milestones, amounting to $5.5 billion for each product.
Daiichi Sankyo has six ADC candidates in its pipeline, including two jointly developed with AstraZeneca. However, this week's disappointing data abstract on the late-stage trial of datopotamab deruxtecan, developed with AstraZeneca, has impacted analysts' expectations.
Photo: Merck Media
