Cavatak is based on Viralytics’ formulation of an oncolytic virus (Coxsackievirus Type A21) which has been shown to selectively infect and eradicate cancer cells.
Merck Research Laboratories senior vice president, chief medical officer and global clinical development head Roy Baynes said: “Viralytics’s approach of engaging the innate immune system to target and kill cancer cells complements our immuno-oncology strategy, which is focused on the rapid advancement of innovative monotherapy approaches and synergistic combinations to help the broadest range of cancer patients.
“We are eager to further build on Viralytics’s science as we continue our efforts to harness the immune system to improve long-term disease control and survival outcomes for people with cancer.”
Currently, Cavatak is being assessed as both intratumoral and intravenous agent across various phase 1 and phase 2 clinical trials.
The oncolytic immunotherapy is also being evaluated in combination with Merck’s anti-PD-1 therapy Keytruda (pembrolizumab).
As part of an agreement signed in 2015, the combination of Cavatak and Keytruda is being studied for use in melanoma, prostate, lung and bladder cancers.
Viralytics managing director and CEO Malcolm McColl said: “This proposed acquisition culminates years of dedicated work by the Viralytics team and represents an opportunity for significant value creation for our shareholders.
“Viralytics is proud to have progressed its lead investigational candidate CAVATAK to Phase 1 and Phase 2 clinical trials and, we believe that Merck, the leader in immuno-oncology, is best suited to advance CAVATAK for the benefit of patients globally, and to realize its potential.”
The transaction is expected to be closed by the second quarter of this year, subject to approval of Viralytics’ shareholders and customary regulatory approvals.
Last month, Viralytics raised A$29.6m ($23.1m) from Chinese life sciences company Lepu Medical Group, which is also currently the largest shareholder of the Australian biotechnology company.
Image: Viralytics will become a subsidiary of Merck after completion of the transaction. Photo: courtesy of Stuart Miles at FreeDigitalPhotos.net.