Merck said Sept. 14 it will acquire a $1 billion stake in Seattle Genetics, a Bothell, Wash.-based drugmaker focused on cancer treatments.
The two drugmakers will co-develop Seattle Genetics' ladiratuzumab vedotin, an investigational antibody drug in clinical trials for breast cancer and other solid tumors.
They will also test the drug in combination with Merck's cancer immunotherapy Keytruda.
Under the deal, Seattle Genetics is eligible for progress-dependent payments of up to $2.6 billion from Merck.
Seattle Genetics also granted Merck an exclusive license to commercialize Tuksya, its drug designed to treat HER2-positive cancers. Under that deal, Seattle Genetics will receive $125 million from Merck and is eligible for progress-dependent payments of up to $65 million.
Read the full news release here.