Pfizer, Merck Form Immunotherapy Pact

Pfizer will pay the German drugmaker Merck KGaA $850 million plus up to $2 billion more in milestones to codevelop MSB0010718C, a Merck anti-PD-L1 antibody in clinical trials as a cancer treatment. The antibody is considered an immunotherapy because it helps stop PD-L1, a tumor cell protein, from blocking the activity of the body’s cancer-fighting T cells. Merck, which has been seeking a partner since September, says the pact will allow it to benefit from Pfizer’s strong position in oncology. Pfizer, which lags other drug companies in immunotherapy, says the alliance will make it part of “the first wave of potential immune-oncology-based treatment regimens.”