Taking double Covid-19 hits, Merck writes off $170M for scrapped drug, highlights $600M in missed sales
Merck acquired MK-7110, the Covid-19 drug originally developed by OncoImmune, for $425 million in cash. The decision to scrap it has cost at least $170 million on paper.
The write-off amount was among a few details the pharma giant divulged in its latest quarterly filing, which offered a closer look at its ill-fated pandemic R&D campaign.
Here’s what we’ve learned: The $50 million that Merck had invested in the new venture that OncoImmune spun out with everything that’s not related to MK-7110 was good for a 20% stake, marking a $17 million premium for OncoImmune’s shares.
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