Japanese healthcare company Daiichi Sankyo Co Ltd (TYO:4568) and US pharmaceutical company Merck & Co Inc (NYSE:MRK), known as MSD outside the US and Canada, announced on Tuesday that they have expanded their collaboration to include MK-6070, a delta-like ligand 3 (DLL3) targeting T-cell engager.

The companies will jointly develop and commercialise MK-6070 globally, except in Japan where Merck retains exclusive rights.

Merck acquired MK-6070 through its acquisition of Harpoon Therapeutics.

The companies plan to evaluate MK-6070 in combination with ifinatamab deruxtecan for small cell lung cancer. Merck will receive an upfront payment of USD170m and will be responsible for manufacturing and supply. R&D and commercialisation costs will be shared, with Merck recording global sales. Worldwide profits will also be shared, except for Japan where Daiichi Sankyo will receive a royalty based on sales.