Merck, Sichuan Kelun enter cancer collaboration, with milestone payments up to $9.3 billion

Merck & Co. Inc. said Thursday that it entered into an agreement with Sichuan Kelun Pharmaceutical Co. Ltd. to develop seven new cancer therapies. Merck will pay the Chinse biotech an upfront payment of $175 million, with milestone payments worth up to $9.3 billion. Merck will also make an equity investment in the company. Merck’s stock is up 44.7% so far this year, while the S&P 500 is down 18.6%.

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