Merck & Co. and Epitopea
Type: License and research collaboration agreement
In-Licensee: MSD
Out-Licensor: Epitopea
Focus: MSD (CryptigenTM TSAs), Epitopea (CryptoMapTM platform)
Upfront Payment: Undisclosed
Milestone Payment: Up to $300 million per product
Financial impact: Merck is bolstering its pipeline as Keytruda's patent exclusivity expires.
Epitopea, a transatlantic cancer immunotherapy company focused on developing accessible, off-the-shelf RNA-based treatments, has entered into a license and research collaboration agreement with MSD (the trade name of Merck & Co., Inc., Rahway, N.J., USA) to identify CryptigenTM tumor-specific antigens (TSAs) for an undisclosed solid tumor. As part of the agreement, Epitopea will utilize its proprietary CryptoMapTM platform to identify and provide novel, immunogenic CryptigenTM TSAs for a specified tumor type. MSD will have exclusive rights to develop and commercialize therapeutics arising from the collaboration. In exchange, Epitopea will receive an undisclosed upfront payment and is eligible for milestone payments that could total up to $300 million per product.
CryptigenTM TSAs
Cryptigen™ TSAs are tumor-specific antigens that have remained largely undetected using conventional methods. These antigens are revealed using Epitopea’s CryptoMap™ platform, an empirically grounded discovery approach that combines spatial immunopeptidomics, genomics, and systems bioinformatics. The CryptoMap™ platform typically identifies approximately 100 aberrantly expressed tumor-specific antigens per tumor type, significantly more than conventional methods. This enables prioritization based on optimal expression and immune recognition, which is believed to be essential for enabling the immune system to detect and eliminate so-called “cold” tumors that often evade immune response.
Five years' market revenue of Merck and Keytruda
Merck has experienced consistent revenue growth over the past five years, with its flagship drug, Keytruda, playing a pivotal role in this success. Keytruda has emerged as the primary driver of Merck's revenue, demonstrating steady growth and solidifying its position as one of the company's most valuable assets. This sustained performance highlights Keytruda's significant impact on Merck's overall financial health, with its continued success fueling the company's expansion and reinforcing its leadership in the oncology market.
Five years market revenue of Merck and Keytruda (2020-2024)
Fig 5: Market revenue of Merck and Keytruda
“Merck will provide Epitopea an undisclosed upfront sum, with potential milestones of up to $300 million per product.”
Market Impact of This Partnership
With the looming 2028 loss of exclusivity for its cancer blockbuster Keytruda, Merck has been actively expanding its pipeline, recently announcing a partnership with Epitopea to identify "hidden" tumor antigens in an undisclosed solid tumor. This move reflects Merck's ongoing strategy to strengthen its pipeline through strategic deals, following its $2 billion licensing agreement with Hansoh Pharma for a GLP-1 receptor agonist in December. Under the terms of the new agreement, Merck will pay Epitopea an undisclosed upfront payment, with the potential for Epitopea to earn up to $300 million per product in milestone payments.