Merck has acquired OncoEthix, a Swiss-based biotechnology company specializing in oncology drug development. With the acquisition, Merck gains an investigational, oral BET (bromodomain) inhibitor, OTX015, currently in Phase Ib studies for the treatment of hematological malignancies and advanced solid tumors. OncoEthix will receive an upfront payment of as much as $110 million and additional milestones of as much as $265 million based on certain clinical and regulatory achievements.
 
BET proteins are considered potential therapeutic targets in cancer, as they play a role in cancer cell growth and survival. Interim data from ongoing Phase I studies of OTX015 have demonstrated meaningful clinical activity in patients with hematological malignancies. A Phase I study evaluating OTX015 in five different solid tumors was initiated in November 2014.
 
“Oncology is a priority area of focus for Merck and the acquisition of OncoEthix supports our strategy to prioritize the development of innovative molecules with the potential to improve the treatment of advanced cancers,” said Dr. Roy Baynes, senior vice president, global clinical development, Merck Research Laboratories. “The potential first-in-class oral BET inhibitor, OTX015, has demonstrated early promising activity in hematological cancers and strategically complements our broad immuno-oncology development program.”
 
“We are delighted that OTX015 will now be in the hands of Merck, a company with a successful track record of developing cutting-edge therapies,” said Bertrand Damour, chief executive officer, OncoEthix. “The acquisition underlines the promise that OTX015 has shown in the treatment of hematological malignancies, and the potential it has for the treatment of advanced solid tumors. We are confident that our transaction with Merck best positions OTX015 to be developed to its full potential in areas of high unmet medical need.”