Merck Acquires Modifi Biosciences in $30 Million Deal to Strengthen Oncology Portfolio

Merck & Co., Inc. has announced the acquisition of Modifi Biosciences, a biotechnology firm based in New Haven, Connecticut, specializing in direct DNA modification-enabled cancer therapeutics. The agreement includes an upfront payment of $30 million, with potential milestone payments totaling up to $1.3 billion.

This acquisition aligns with Merck's strategy to diversify its oncology portfolio, especially as its blockbuster cancer drug, Keytruda, approaches patent expiration. By integrating Modifi's innovative therapies, Merck aims to enhance its capabilities in treating challenging cancers with DNA repair deficiencies.

Modifi Biosciences, a Yale University spinout founded in 2021, has developed a novel class of small molecules targeting cancer cells deficient in the DNA repair protein O6-methylguanine methyl transferase (MGMT). Their research, published in Science in 2022, demonstrated promising preclinical results across various tumor models, including glioblastomas.

Dr. Ranjit S. Bindra, Co-founder of Modifi Biosciences, stated, "In founding Modifi Biosciences, we sought to radically change the oncology treatment paradigm for cancer patients with glioblastoma and other tumors. We are honored to have Merck recognize the potential of our science, and as an oncology company, they are perfectly positioned to advance our innovations through clinical trials and commercialization."

Dr. David Weinstock, Vice President, Discovery Oncology, Merck Research Laboratories, commented, "DNA repair defects are a frequent hallmark of tumor cells and a major cause of resistance to cancer therapy. The talented Modifi Biosciences team has developed an innovative approach that we believe has potential for treating some of the most refractory cancer types."

Merck has been actively pursuing acquisitions to bolster its oncology pipeline in anticipation of Keytruda's patent expiration. In 2023, Merck entered a $5.5 billion partnership with Japan's Daiichi Sankyo to co-develop targeted cancer therapies known as antibody-drug conjugates.

This acquisition underscores the dynamic nature of the pharmaceutical industry, where companies continually seek innovative therapies to address unmet medical needs and maintain competitive advantage.