ARTICLE | Company News

Merck buying oncolytic virus play Viralytics for $398M

February 23, 2018 3:23 PM UTC

Merck & Co. Inc. (NYSE:MRK) will acquire oncolytic immunotherapy company Viralytics Ltd. (ASX:VLA; OTCQX:VRACY) for A$1.75 per share, or A$502 million ($398 million). The price is a 182% premium to Viralytics’ close of A$0.62 on Feb. 21 in Australia, before the deal was announced.

Merck will gain Cavatak (CVA21), which is in Phase I and II testing as monotherapy and in combination with Merck’s Keytruda pembrolizumab and Yervoy ipilimumab from Bristol-Myers Squibb Co. (NYSE:BMY) to treat cancer, including melanoma, prostate, lung and bladder cancers. The deal is slated to close next quarter...