Merck KGaA hands over CAR-T therapy business to Intrexon in deal worth $175 million

German pharma firm Merck KGaA has agreed to hand over its CAR-T therapy business to US company Intrexon in a deal worth $175 million.

Intrexon will hand over $150 million in stock and a $25 million convertible note. The company will in turn receive a $25 million cash investment. Thus Merck will maintain an investment in the next generation of CAR-T therapies.

The new deal comes three years after Merck forged a $941 million deal with Intrexon in 2015. Merck has characterised the move as an attempt to streamline their R&D processes.

However the firm has failed to make a lasting impression when it comes to CAR-T therapies having been overtaken by Swiss firm Novartis and Gilead subsidiary Kite. Shares in Intrexon were up 8% premarket but down overall.

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