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Merck (MRK) Gets Exclusive Rights to Opevesostat From Partner
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Merck (MRK - Free Report) and partner Orion Corporation announced that they have agreed to mutually exercise the option that will provide Merck global exclusive rights to develop and commercialize opevesostat (previously MK-5684), an investigational CYP11A1 inhibitor for the treatment of certain patients with metastatic castration-resistant prostate cancer (mCRPC).
Per a collaboration deal signed in 2022, Merck and Finnish pharmaceutical company, Orion Corporation currently have a co-development and co-commercialization agreement for opevesostat. The option exercise will convert the co-exclusive license into an exclusive global license for Merck.
Opevesostat is an oral, non-steroidal inhibitor of CYP11A1, an enzyme that suppresses the production of steroid hormones, which play a key role in causing prostate cancer. Opevesostat is now being evaluated in two phase III studies for the treatment of certain patients with mCRPC.
With the latest option exercise, Merck will also get exclusive rights to other candidates targeting CYP11A1 covered by the agreement.
Merck’s stock has risen 17.3% so far this year, underperforming an increase of 21.1% for the industry.
Per the deal, Orion will be eligible to receive development, regulatory and sales-based milestone payments of up to $1.63 billion, as well as royalties on sales if the product is approved. Merck will now take care of opevesostat’s development and commercialization. Orion will be responsible for the manufacture of clinical and commercial supply for Merck. The exclusive global license is expected to become effective in the third quarter of 2024, subject to some closing conditions.
Merck has entered into several licensing deals in the past few years. Among some recent deals, in May, Merck announced a definitive agreement to acquire London-based private biotech Eyebiotech Limited (“EyeBio”), which makes therapies for retinal diseases. The buyout will expand Merck’s presence in the growing ophthalmology market. The acquisition will add EyeBio’s lead pipeline candidate, Restoret, a novel Wnt agonist antibody being developed for treating retinal diseases like diabetic macular edema and neovascular age-related macular degeneration in a phase Ib/IIa study.
In March, Merck completed its previously announced agreement to acquire Harpoon Therapeutics. The acquisition added Harpoon Therapeutics’ lead pipeline candidate, HPN328, a T cell engager targeting delta-like ligand 3 (DLL3). HPN328 is currently being evaluated in a phase I/II study in certain patients with small cell lung cancer (SCLC) and other neuroendocrine tumor types. The DLL3 ligand is expressed at high levels in SCLC and neuroendocrine tumors.
In the past 60 days, 2024 estimates for Bioventus have improved from 16 cents per share to 27 cents per share. For 2025, earnings estimates have improved from 40 cents to 43 cents per share in the past 60 days. So far this year, shares of BVS have risen 8.73%.
Earnings of Bioventus beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 151.67%.
In the past 60 days, loss estimates for Heron Therapeutics for 2024 have narrowed from 24 cents per share to 10 cents per share over the past 60 days. For 2025, estimates have improved from a loss of 8 cents per share to earnings of 1 cent per share over the same timeframe. Year to date, shares of HRTX have risen 104.1%.
Earnings of Heron Therapeutics beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 30.33%.
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Merck (MRK) Gets Exclusive Rights to Opevesostat From Partner
Merck (MRK - Free Report) and partner Orion Corporation announced that they have agreed to mutually exercise the option that will provide Merck global exclusive rights to develop and commercialize opevesostat (previously MK-5684), an investigational CYP11A1 inhibitor for the treatment of certain patients with metastatic castration-resistant prostate cancer (mCRPC).
Per a collaboration deal signed in 2022, Merck and Finnish pharmaceutical company, Orion Corporation currently have a co-development and co-commercialization agreement for opevesostat. The option exercise will convert the co-exclusive license into an exclusive global license for Merck.
Opevesostat is an oral, non-steroidal inhibitor of CYP11A1, an enzyme that suppresses the production of steroid hormones, which play a key role in causing prostate cancer. Opevesostat is now being evaluated in two phase III studies for the treatment of certain patients with mCRPC.
With the latest option exercise, Merck will also get exclusive rights to other candidates targeting CYP11A1 covered by the agreement.
Merck’s stock has risen 17.3% so far this year, underperforming an increase of 21.1% for the industry.
Per the deal, Orion will be eligible to receive development, regulatory and sales-based milestone payments of up to $1.63 billion, as well as royalties on sales if the product is approved. Merck will now take care of opevesostat’s development and commercialization. Orion will be responsible for the manufacture of clinical and commercial supply for Merck. The exclusive global license is expected to become effective in the third quarter of 2024, subject to some closing conditions.
Merck has entered into several licensing deals in the past few years. Among some recent deals, in May, Merck announced a definitive agreement to acquire London-based private biotech Eyebiotech Limited (“EyeBio”), which makes therapies for retinal diseases. The buyout will expand Merck’s presence in the growing ophthalmology market. The acquisition will add EyeBio’s lead pipeline candidate, Restoret, a novel Wnt agonist antibody being developed for treating retinal diseases like diabetic macular edema and neovascular age-related macular degeneration in a phase Ib/IIa study.
In March, Merck completed its previously announced agreement to acquire Harpoon Therapeutics. The acquisition added Harpoon Therapeutics’ lead pipeline candidate, HPN328, a T cell engager targeting delta-like ligand 3 (DLL3). HPN328 is currently being evaluated in a phase I/II study in certain patients with small cell lung cancer (SCLC) and other neuroendocrine tumor types. The DLL3 ligand is expressed at high levels in SCLC and neuroendocrine tumors.
Zacks Rank & Stocks to Consider
Merck currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the healthcare sector are Bioventus (BVS - Free Report) and Heron Therapeutics (HRTX - Free Report) . While Bioventus sports a Zacks Rank #1 (Strong Buy), Heron Therapeutics has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, 2024 estimates for Bioventus have improved from 16 cents per share to 27 cents per share. For 2025, earnings estimates have improved from 40 cents to 43 cents per share in the past 60 days. So far this year, shares of BVS have risen 8.73%.
Earnings of Bioventus beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 151.67%.
In the past 60 days, loss estimates for Heron Therapeutics for 2024 have narrowed from 24 cents per share to 10 cents per share over the past 60 days. For 2025, estimates have improved from a loss of 8 cents per share to earnings of 1 cent per share over the same timeframe. Year to date, shares of HRTX have risen 104.1%.
Earnings of Heron Therapeutics beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 30.33%.