- Merck has acquired Modifi Bio, a startup focused on developing molecules to treat chemotherapy-resistant glioblastoma, for $30 million upfront.
- The total deal value could reach $1.3 billion based on potential future payments linked to the development of its therapeutic candidates.
Merck has completed the acquisition of Modifi Bio, a startup developed from Yale University, for an upfront payment of $30 million. The deal could ultimately be worth up to $1.3 billion, depending on future milestone payments associated with the company’s cancer therapies.
Founded in 2021, Modifi Bio aims to transform research from Yale into effective treatments for brain cancers, particularly glioblastoma, a highly aggressive form of cancer. The company’s lead candidate, MOD-246, is a DNA modifier designed to link two strands of DNA in a manner that is damaging to cancer cells while allowing healthy cells to recover. This innovative approach has been described as akin to precision chemotherapy.
Ranjit Bindra, co-director of the Yale Brain Tumor Center and co-founder of Modifi Bio, noted that the molecules are termed “chameleon-like” because they exhibit different behaviours based on their DNA environment. “The molecules ‘look’ and behave totally different based on the molecular surroundings in the DNA,” he said.
The acquisition follows Modifi Bio’s initial efforts to secure funding in a challenging biotech market. While the startup had raised $10.7 million in seed funding, the founders faced difficulties pitching treatments for glioblastoma, a less common cancer. Bindra mentioned that some investors were more interested in the technology’s applications outside central nervous system (CNS) indications.
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