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Germany’s Merck Ends Bavencio Pact with Pfizer

05.04.2023 - Germany’s Merck will regain exclusive worldwide rights to develop, manufacture and commercialize the anti-programmed death ligand-1 (PD-L1) antibody Bavencio (avelumab) following the termination of its Alliance agreement with US drugs giant Pfizer, planned for the end of the second quarter.

The Darmstadt-based group sees Bavencio as the standard of care for first-line maintenance treatment of adult patients with locally advanced or metastatic urothelial carcinoma (UC) who are progression-free following platinum-based chemotherapy. It entered the partnership with Pfizer in 2014 with the goal of accelerating the drug’s development.

To clinch the deal nine years ago, Pfizer paid Merck $850 million upfront, plus up to $2 billion in milestones. The New York pharma told US media that the termination of the partnership fulfilled its German partner’s “long-term interest.”

Following the agreement’s termination, Merck said Bavencio will further contribute to its Big 3 strategy that focuses on new healthcare products, process solutions and life science services, as well as semiconductor solutions.

Going forward, the German pharmaceuticals, chemicals and life sciences group said the current profit share agreement with Pfizer will be replaced by a 15% royalty on net sales of Bavencio.

While the two companies will continue to operationalize their respective ongoing clinical trials, Merck will control all future research and development activities and will continue to have sole responsibility for product manufacturing and supply chain.

Belén Garijo, Merck’s CEO, said the drugmakers’ joint efforts “have delivered meaningful therapeutic value to patients around the world who are living with cancer, and thanks to the partnership with Pfizer, we are now very well positioned to continue to deliver this therapy to patients in need.”

For the German group, regaining full control of Bavencio is the latest example of its “focused leadership strategy in oncology.” In combination with axitinib, the drug is “an important therapeutic option for appropriate patients with advanced renal cell carcinoma (RCC),” said Merck’s Healthcare CEO, Peter Guenter. Bavencio is also authorized for use as a monotherapy for metastatic Merkel cell carcinoma (MCC).

With its late-stage pipeline, its broader oncology portfolio, and now with full ownership of Bavencio, Guenter said, “we look forward to demonstrating the strength of our oncology franchise.”

Author: Dede Williams, Freelance Journalist