GlaxoSmithKline and Merck KGaA agree immunotherapy deal worth up to $4 Billion

Avacta Group

GlaxoSmithKline plc (LON: GSK) and Merck KGaA, Darmstadt, Germany have announced that they have entered into a global strategic alliance to jointly develop and commercialise M7824 (bintrafusp alfa). M7824 is an investigational bifunctional fusion protein immunotherapy that is currently in clinical development, including potential registration studies, for multiple difficult-to-treat cancers. This includes a Phase II trial to investigate M7824 compared with pembrolizumab as a first-line treatment in patients with PD-L1 expressing advanced non-small cell lung cancer (NSCLC).

Avacta plc CEO Alastair Smith commented,

“After Merck’s promising phase 1 data last summer for this TGF-beta/PDL1 bispecific blocker, GSK clearly wants a piece of the action. Bispecifics built on the PD1/PDL1 backbone are going to be one of the mainstays of cancer immunotherapies in the coming years and something that Avacta is building its pipeline around.”

M7824 is designed to simultaneously target two immuno-suppressive pathways, transforming growth factor-β (TGF-β) trap and an anti-programmed cell death ligand-1 (PD-L1), that are commonly used by cancer cells to evade the immune system. Bifunctional antibodies aim to increase efficacy above and beyond that achieved with individual therapies or combinations of individual therapies.1 M7824 has the potential to offer new ways to fight difficult-to-treat cancers beyond the established PD-1/PD-L1 class. In addition to use as a single agent, M7824 is also being considered for use in combination with other assets from the pipelines of both companies.

Avacta Group plc (LON: AVCT) principal focus is on its proprietary Affimer® technology which is a novel engineered alternative to antibodies that has wide application in Life Sciences for diagnostics, therapeutics and general research and development.

Antibodies dominate markets worth in excess of $100bn despite their shortcomings. Affimer® technology has been designed to address many of these negative performance issues, principally; the time taken to generate new antibodies, the reliance on an animal’s immune response, poor specificity in many cases, and batch to batch variability. Affimer® technology is based on a small protein that can be quickly generated to bind with high specificity and affinity to a wide range of protein targets.

Avacta has a pre-clinical biotech development programme with an in-house focus on immuno-oncology as well as partnered development programmes. Avacta is commercialising non-therapeutic Affimer® reagents through licensing to developers of life sciences research tools and diagnostics.

We’ll keep you in the loop!

Join 1,000's of investors who read our articles first

We don’t spam! Read our privacy policy for more info.

Share on:
Find more news, interviews, share price & company profile here for:

Latest Company News

GSK subsidiary TESARO starts legal action over Jemperli licence dispute

TESARO, part of GSK, has filed a case in the Delaware Chancery Court claiming AnaptysBio has breached its licence agreement for the cancer treatment Jemperli.

GSK Plc lifts 2025 guidance after strong Q3 sales and profit growth

GSK reported Q3 2025 sales of £8.5 billion, up 8% at constant exchange rates, driven by strong performances across Specialty Medicines, Vaccines and General Medicines.

GSK receives EMA Orphan Drug Designation for GSK5764227 in Pulmonary NEC

GSK has announced that its B7-H3-targeted antibody-drug conjugate, GSK5764227 (GSK'227), has been granted Orphan Drug Designation by the European Medicines Agency for treating pulmonary neuroendocrine carcinoma, including small-cell lung cancer.

GSK Plc gains FDA approval for Blenrep combination in multiple myeloma

GSK has received FDA approval for Blenrep (belantamab mafodotin-blmf) with bortezomib and dexamethasone to treat adults with relapsed or refractory multiple myeloma after at least two prior therapies.

GSK Plc names Luke Miels as CEO Designate, effective January 2026

GSK has announced the appointment of Luke Miels as CEO Designate, with full responsibilities and a Board position from 1 January 2026. Currently Chief Commercial Officer, Luke has been key in expanding GSK’s specialty medicines and vaccines portfolio, bringing senior experience from AstraZeneca, Roche and Sanofi-Aventis.

GSK’s Gepotidacin receives US FDA Priority Review for gonorrhoea treatment

GSK has announced that the US FDA has accepted for priority review a supplemental New Drug Application for gepotidacin as an oral treatment for uncomplicated urogenital gonorrhoea in patients aged 12 and over.

Search

Search