Merck Signs Multi-Billion Deal With Japan's Daiichi Sankyo For Cancer Therapy Drug Development
Portfolio Pulse from Nabaparna Bhattacharya
Merck & Company, Inc. (MRK) and Japan's Daiichi Sankyo Co. Ltd. (DSKYF) have entered into a global development and commercialization agreement for three of Daiichi Sankyo's DXd antibody-drug conjugate (ADC) candidates for multiple types of cancer. Merck will pay Daiichi Sankyo $5.5 billion in the agreement, which has a total potential consideration of up to $22 billion. Daiichi Sankyo aims for at least $6 billion of revenue from its oncology business in the fiscal year ending March 31, 2026.
October 20, 2023 | 2:59 pm
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POSITIVE IMPACT
Daiichi Sankyo has entered into a significant partnership with Merck, which will provide a substantial financial boost and could impact its stock price.
The partnership with Merck represents a significant financial boost for Daiichi Sankyo, which could lead to potential gains in the future if the drug candidates are successful. It also aligns with the company's aim to generate at least $6 billion of revenue from its oncology business in the fiscal year ending March 31, 2026.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Merck has entered into a significant partnership with Daiichi Sankyo, which will impact its financials and potentially its stock price.
The partnership with Daiichi Sankyo represents a significant investment for Merck, which could lead to potential gains in the future if the drug candidates are successful. However, it will also result in a reduction of both fourth-quarter and full-year 2023 GAAP and non-GAAP results due to the upfront payment and continuation payments.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
AstraZeneca is mentioned in the context of a recent data release with Daiichi Sankyo, but the news does not directly impact the company.
AstraZeneca is mentioned in the context of a recent data release with Daiichi Sankyo, but the news does not directly impact the company or its stock price.
CONFIDENCE 90
IMPORTANCE 10
RELEVANCE 20