Merck & Co. Inc. MRK and Eli Lilly and Company LLY announced yet another immuno-oncology collaboration – the companies expanded their existing immuno-oncology tie-up under which Merck’s Keytruda will be evaluated in combination with Eli Lilly’s abemaciclib in a phase I study across multiple tumor types. On the basis of phase I study results, the collaboration will advance into phase II studies in patients who have been diagnosed with either metastatic breast cancer or non-small cell lung cancer (NSCLC).
While financial details of the agreement were undisclosed, it was announced that the phase I study and subsequent phase II studies, if any, will be sponsored by Eli Lilly. Enrollment is scheduled to commence in early 2016.
We note that Merck’s Keytruda is an anti-PD-1 immunotherapy while abemaciclib is a CDK 4/6 inhibitor.
We remind investors that the original deal between Merck and Eli Lilly was announced earlier this year (Jan 2015). Ongoing studies under the original deal include a phase I/II study evaluating the combination of Eli Lilly’s Cyramza and Keytruda in multiple tumors, and a phase I/II study assessing the combination of Eli Lilly’s Portrazza and Keytruda in NSCLC. The deal was expanded last month to evaluate the safety and efficacy of Eli Lilly’s Alimta in combination with Keytruda in a pivotal phase III study in first-line non-squamous NSCLC.
These expansions show the growing interest in immuno-oncology. Apart from Eli Lilly, Merck is collaborating with several other companies including Amgen Inc. AMGN for the evaluation of Keytruda in combination with other regimens. Earlier this month, Merck announced a couple of cancer immunotherapy collaborations with Amgen to assess Keytruda in combination with Amgen’s Blincyto and AMG 820.
Currently, Keytruda is being studied for more than 30 types of tumors. We note that Keytruda registered sales of $352 million in the first nine months of 2015.
Merck also has a couple of key regulatory events coming up later this month. While Keytruda is under priority review in the U.S. for the first-line treatment of unresectable or metastatic melanoma with a response expected by Dec 19, response for the company’s supplemental biologics license application for Keytruda for the treatment of advanced melanoma patients refractory to Yervoy is expected by Dec 24.
While Merck is a Zacks Rank #3 (Hold) stock, Eli Lilly carries a Zacks Rank #2 (Buy). A better-ranked stock in the health care sector is Achillion Pharmaceuticals, Inc. ACHN, carrying a Zacks Rank #1 (Strong Buy).
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