Merck adds ROR1 to its pipeline, rewards VelosBio’s investors with $2.8B takeout

Although VelosBio appeared to be heading down the path to an IPO, the oncology company has instead accepted a $2.8 billion takeout offer from Merck now that the biotech’s antibody-drug conjugate has shown signs of efficacy in blood cancer.

Merck & Co. Inc. (NYSE:MRK) will gain rights to VLS-101, an ADC targeting ROR1 that has led to responses in two liquid tumor types in a Phase I trial. VelosBio Inc. also began a Phase II trial of the therapy last month in breast and lung cancer patients...