In deal with Taiho and Astex, Merck gains another K-Ras program

A deal giving Merck rights to an oncology program targeting K-Ras could help the pharma further extend its dominance in lung cancer beyond market-leading PD-1 inhibitor Keytruda -- a therapy that has already shown effects on K-Ras mutant disease.

Merck & Co. Inc. (NYSE:MRK) will pay $50 million up front to Taiho Pharmaceutical Co. Ltd. and the Astex Pharmaceuticals subsidiary of Otsuka Pharmaceutical Co. Ltd. for exclusive, worldwide rights to small molecules in preclinical development against several oncology drug targets including K-Ras (KRAS). Taiho, which is a subsidiary of Otsuka Holdings Co. Ltd. (Tokyo:4578), and Astex will together be eligible for $2.5 billion in milestones, plus royalties...