Merck & Co. has agreed to pay $37.5 million to exercise its option on a new antibody-drug conjugate (ADC) candidate from Kelun-Biotech while returning rights to another asset

The partnership between Merck and Kelun-Biotech, established through multiple agreements in 2021 and 2022, involved significant financial commitments, including $35 million for rights to a candidate and $175 million for licenses and options on various assets

In 2023, Merck decided to discontinue one license and one option from their collaboration with Kelun

The newly opted ADC, SKB571, is a bispecific molecule designed for treating solid tumors like lung and gastrointestinal cancers

Kelun-Biotech has not yet disclosed the specific targets of the ADC but emphasized design features aimed at improving tumor targeting and addressing tumor heterogeneity