US pharmaceutical company Merck & Co Inc (NYSE:MRK), known as MSD outside the US and Canada, announced on Tuesday that, through its subsidiary Prometheus BioSciences, it has reached an agreement with Dr. Falk Pharma GmbH (Falk) to discontinue their existing co-development and co-commercialisation contract for MK-8690, an investigational anti-CD30 ligand monoclonal antibody.

Under the agreement, Merck now holds global development and commercialisation rights to MK-8690, which is being evaluated in an early-stage clinical trial. Falk will receive a USD150m upfront payment, as well as potential milestone payments and royalties in certain territories.

The original collaboration between Falk and Prometheus was signed in 2020, with Merck acquiring Prometheus in 2023. Merck will record a USD150m pre-tax charge to research and development expenses, equivalent to approximately USD0.05 per share, in its fourth-quarter GAAP and non-GAAP results.