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--Merck and GlaxoSmithKline have entered an agreement in immuno-oncology valued at up to $4.23 billion

--Shares in both companies edged higher on the news

 
   By Donato Paolo Mancini 
 

Merck KGaA (MRK.XE) and GlaxoSmithKline PLC (GSK.LN) have entered a collaboration agreement valued at up to 3.7 billion euros ($4.23 billion), the two companies said Tuesday, as they jostle for position in the highly lucrative field of immuno-oncology.

The agreement will involve eight high-priority immuno-oncology clinical-development studies currently ongoing or due to commence in 2019, including studies in non-small cell lung cancer and biliary-tract cancers, Merck said.

Immuno-oncology uses the body's own immune defenses to fight against tumors. Novartis AG (NOVN.EB) and Gilead Sciences Inc. (GILD) are among the big companies active in the field, for example, with their CAR-T therapies.

Under the terms of the agreement, Germany's Merck will receive EUR300 million as an upfront payment, and will be eligible for EUR500 million in further milestone payments triggered by data from the M7824 lung-cancer program. On top of this, a total of up to EUR2.9 billion will be paid for future approval and commercial milestones, Merck said.

At 1232 GMT, shares in Merck traded 1.7% higher after gaining as much as 2.8%, while GSK edged 1.3% higher.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com; @donatopmancini

(END) Dow Jones Newswires

February 05, 2019 08:07 ET (13:07 GMT)

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