The Estimable John Carroll, On Today's Smallish EU Immuno-Oncology Acquisition...

True enough, this pathway is still pre-clinical, and yet -- in much the same way as Kenilworth did with Scotland's IO Met in January of 2016 -- by buying in now, Merck gets the tech on the cheap -- in relative terms, at least.

Of course at Phase I the risk is correlatively higher, but the $600 million is immaterial to a company this size -- even if it all vanishes. But I don't imagine that will happen. Here's a bit -- do go read it all:

. . . .Munich-based Rigontec is delivering a solid return for its venture backers. Merck $MRK has struck a rare deal to buy the biotech for $150 million in cash and another $453 million in milestones, snapping up a 3-year-old fledgling that raised just €30 million to get to this point.

For Merck it’s another example of how Roger Perlmutter likes to augment the work being done around its PD-1 superstar Keytruda with the occasional add-on. It’s a small deal for the pharma giant, and he’s clearly impressed with the potential the Bonn University spinout has in activating RIG-I as a key pathway in the innate immune system.

The technology is designed to activate an immune response, just as PD-1 can eliminate a defensive network protecting cancer cells. . . .

Now you know. Onward, on a glorious 70 degree morning here, and I am once again put in mind of new life, and all it holds (from January of 2016). . . smile.

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