US pharmaceutical company Merck & Co Inc (NYSE:MRK), known as MSD outside the US and Canada, announced on Friday that it has agreed to acquire CN201, a clinical-stage bispecific antibody developed by Curon Biopharmaceutical, for an upfront payment of USD700m.

Curon is eligible for additional milestone payments of up to USD600m.

CN201 is currently in phase 1 and 1b/2 clinical trials for non-Hodgkin's lymphoma and B-cell acute lymphocytic leukaemia, respectively. Preliminary data indicate potential efficacy against B-cell malignancies with good tolerability. Merck plans to evaluate CN201 for both B-cell malignancies and autoimmune diseases.

Subject to regulatory approval, the transaction is expected to close in the third quarter of 2024. Merck anticipates a pre-tax charge of approximately USD750m (reflecting the upfront payment and other related costs), or USD0.28 per share, in its non-GAAP results for the closing quarter.