Merck Narrows Focus, Sells Therapeutic Drugs Back to BioMarin

Oct 01, 2015

The Street

In an effort to better focus on its core businesses, Merck will sell back rights to Kuvan, a drug used to treat a rare metabolic disorder, to BioMarin Pharmaceutical, for up to $586 million.

The deal also includes Merck returning the option to develop Peg-Pal, also designed to treat the metabolic disorder known as PKU, to California-based BioMarin. In 2005, Merck acquired the exclusive rights to Kuvan and the option to develop Peg-Pal in markets outside of the U.S. and Japan from BioMarin.

"Returning the rights of Kuvan and Peg-Pal to BioMarin will allow Merck to fully focus on its core businesses, as well as further align R&D investment behind key strategic areas," said Merck Healthcare CEO Belén Garijo in a statement to The Street.

Read The Street release