Summary
- Merck agreed to acquire Tilos Therapeutics for $773 million, which opens up the possibility of using anti-LAP antibodies to target cancer, fibrosis, and autoimmune diseases.
- The ability for anti-LAP antibodies to disrupt the microtumor environment could make it viable to be combined with the likes of Keytruda to improve clinical outcomes in patients with cancer.
- Merck recently gained two new FDA approvals under its belt, which should help keep Keytruda on top in the checkpoint inhibitor space.
- Keytruda generated more than $7 billion in sales in 2018 and then saw an impressive Q1 2019 with $2.26 billion in sales alone.
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Merck (MRK) announced that it had entered into an agreement to acquire Tilos Therapeutics. This is a good deal for Merck because it will give it an opportunity to test its drug Keytruda in combination with Tilos' anti-LAP antibodies to treat patients with cancer. The promise of this early stage program is strong because such anti-LAP antibodies can also be used for fibrosis and autoimmune diseases. This opens up the door for many other potential indications to go after with this type of technology.
