Merck Sharp & Dohme Corp., a global healthcare leader, has announced the strategic acquisition of Caraway Therapeutics, a trailblazing biotech firm specializing in the development of treatments for neurodegenerative and rare diseases. The deal, potentially valued at a staggering $610 million, signifies Merck’s commitment to expanding its portfolio in the realm of neurological health.
Caraway Therapeutics, known for its innovative approach to drug discovery, has been focusing on the modulation of lysosomal function—a promising avenue for addressing progressive neurodegenerative disorders. With this acquisition, Merck gains access to Caraway’s four leading drug candidates, three of which are in preclinical stages targeting non-CNS rare diseases, Parkinson’s disease associated with the GBA gene, and a dual-focus program on Parkinson’s disease and amyotrophic lateral sclerosis (ALS). The fourth program, ATP13A2, is in the discovery phase, also aimed at combating Parkinson’s disease.
George Addona, Senior Vice President of Discovery, Preclinical Development, and Translational Medicine at Merck Research Laboratories, praised Caraway’s multidisciplinary approach, which has led to significant advancements in the field. The board of directors at Caraway has given their unanimous approval for the transaction, which is poised to bolster Merck’s influence in the treatment of neurodegenerative diseases.
This acquisition is a continuation of Merck’s aggressive expansion strategy, following the $11 billion acquisition of Prometheus Biosciences, which brought the promising humanized monoclonal antibody MK-7240 into Merck’s immunology pipeline. Earlier in the year, Merck entered a $2.55 billion collaboration with Proxygen to develop molecular glue degrader therapies, and in October, invested $5.5 billion upfront for three clinical antibody drug conjugates (ADCs) from Daiichi Sankyo, aimed at enhancing its immuno-oncology offerings.
Merck’s strategic moves also include the pursuit of new indications and combinations to strengthen its Keytruda franchise. The company recently received priority review from the Food and Drug Administration for sotatercept, a novel hypertension treatment, following encouraging results from the Phase 3 STELLAR trial.
The company’s latest earnings report showcased a robust financial performance, with worldwide sales reaching $16 billion, a 7% increase year-over-year. This growth was driven in part by a 17% increase in Keytruda sales, which totaled $6.3 billion. Excluding sales from its COVID-19 oral antiviral Lagevrio, Merck still achieved a 6% sales growth. As a result, Merck has updated its worldwide sales guidance to between $59.7 billion and $60.2 billion, with Lagevrio sales projected to hit $1.3 billion.
Despite these successes, Merck has faced challenges, such as the recent setback with an advisory panel to the FDA not endorsing a drug for chronic cough, casting doubt on its approval.
Merck’s acquisition of Caraway Therapeutics is a testament to the company’s dedication to pioneering healthcare solutions and its strategic vision for the future of medicine.
