Merck to Acquire Biotech Company Afferent -- Update

By Josh Beckerman 

Merck & Co. has agreed to purchase biotechnology company Afferent Pharmaceuticals, whose lead drug candidate is being evaluated as a treatment for refractory, chronic cough and idiopathic pulmonary fibrosis with cough.

The deal will include an upfront payment of $500 million and milestones of up to $750 million.

San Mateo, Calif.-based Afferent focuses on targeting the P2X3 receptor for neurogenic conditions.

Last month, Afferent reported that its lead candidate, AF-219, significantly reduced cough frequency in the first cohort of a two-cohort, Phase 2b study of chronic cough patients.

In July, Afferent said it completed a $55 million Series C financing led by Fidelity Management & Research Co.

Biotech deals have been abundant, with big drug companies refreshing their portfolios as patents expire for older products.

Merck's recent financial results have been hurt by generic versions of Remicade, a treatment for inflammatory diseases, and allergy-symptom treatment Nasonex.

Afferent was founded in 2009, when it licensed Roche Holding AG's P2X3i receptor program and raised $23 million in Series A financing. At the time, AF-219 was in development as a treatment for chronic pain.

The company's investors have included Pappas Ventures, New Leaf Venture Partners, Third Rock Ventures and Domain Associates.

Merck expects to complete the deal in the third quarter. The company's recent acquisitions have included an $8.3 billion deal for antibiotic maker Cubist Pharmaceuticals and the purchase of cancer-focused IOmet Pharma.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

June 09, 2016 18:52 ET (22:52 GMT)

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