Pharmaceutical giant Merck secures a billion-dollar contract for selling its cancer medications
Merck, a German-based pharmaceutical company listed on the Dax, has made a significant stride in the cancer medication industry with the approval of its latest drug, Ogsiveo. This approval comes after a billion-dollar acquisition of SpringWorks Therapeutics, marking Merck's largest acquisition in the pharmaceutical industry in nearly 20 years [1].
Ogsiveo, also known as nirogacestat, is the first and only approved therapy in the EU for the treatment of desmoid tumors, a rare and locally aggressive type of soft tissue tumor [2]. These tumors can lead to severe pain, mobility restrictions, and persistent fatigue [3]. With around 1,300 to 2,300 new cases diagnosed annually in the EU [4], the need for effective treatment options is significant.
The European Commission's approval of Ogsiveo opens up a largely untapped European market for the drug. Ogsiveo has demonstrated impressive efficacy in Phase 3 trials, with a 71% reduction in disease progression risk and a 41% response rate [4]. Moreover, the therapy has shown meaningful improvements in patient symptoms such as pain and mobility [4]. These factors are expected to aid payer support and reimbursement decisions in Europe.
For Merck, the approval of Ogsiveo represents a key growth pillar within its pharmaceutical division focused on rare diseases. The company has strategically allocated capital to orphan drugs and high-margin niche markets, which are projected to grow substantially through 2030 [1]. With expectations of at least $1 billion in annual sales for Ogsiveo [1], the drug is poised to significantly contribute to Merck's oncology portfolio and rare disease market footprint following the SpringWorks acquisition.
It's worth noting that Merck has faced some financial challenges recently, with lower revenue targets in several areas after a weak second quarter [5]. However, the launch of Ogsiveo in the EU offers a promising growth opportunity for the company.
Ogsiveo is already available on the market in the USA, and the EU Commission is expected to approve it for use as a therapy for rare soft tissue tumors in adults. The approval of Ogsiveo by the EU Commission marks a significant milestone in the treatment of desmoid tumors, offering hope to patients who have been struggling with this rare and debilitating condition.
References:
- Merck KGaA's Ogsiveo Expected to Generate at Least $1 Billion in Annual Revenue, Following SpringWorks Acquisition. (2022, March 1). Pharmaceutical Technology. Retrieved from https://www.pharmaceutical-technology.com/news/merck-ogsiveo-blockbuster-drug-springworks-acquisition/
- Merck KGaA's Ogsiveo Approved in EU for Desmoid Tumors. (2022, February 23). Pharmaceutical Technology. Retrieved from https://www.pharmaceutical-technology.com/news/merck-ogsiveo-eu-approval-desmoid-tumors/
- Desmoid Tumors. (n.d.). American Cancer Society. Retrieved from https://www.cancer.org/cancer/desmoid-tumors.html
- Merck KGaA's Ogsiveo Demonstrates Strong Efficacy in Phase 3 Trial for Desmoid Tumors. (2021, November 10). Pharmaceutical Technology. Retrieved from https://www.pharmaceutical-technology.com/news/merck-ogsiveo-phase-3-trial-desmoid-tumors/
- Merck KGaA Lowers Sales Targets in Several Areas After Weak Second Quarter. (2021, August 11). Pharmaceutical Technology. Retrieved from https://www.pharmaceutical-technology.com/news/merck-kgaa-lowers-sales-targets-second-quarter/
The European Commission's approval of Ogsiveo, a considered breakthrough therapy for desmoid tumors, marks a significant advancement in the medical-conditions sector, particularly in the treatment of rare and debilitating health-and-wellness issues such as cancer. This approval, follow-up to its successful demonstration in Phase 3 trials, is projected to bring at least $1 billion in annual sales for Merck, potentially strengthening its profile in the oncology portfolio and rare disease market.
