TLDR
- Merck will pay up to $2.13 billion to license an experimental cancer drug from China’s SciBrunch Therapeutics.
- The deal gives Merck worldwide rights to SPR2015, a treatment targeting the KRAS G12D mutation.
- SciBrunch gets a $400 million upfront payment plus up to $1.73 billion in milestone payments.
- Merck will book a pretax charge of $400 million, or about 13 cents per share, in Q3 2026.
- SPR2015 is still preclinical and has not been tested in humans yet.
Merck stock did not see a major reaction Monday following news of its latest licensing deal. The drugmaker is paying up to $2.13 billion for rights to an experimental cancer treatment from Chinese biotech SciBrunch Therapeutics.
The agreement gives Merck exclusive worldwide rights to develop, manufacture, and sell SPR2015. It’s an oral drug candidate designed to target KRAS G12D, one of the most common cancer-driving mutations.
That mutation shows up frequently in pancreatic, colorectal, and lung cancers. Finding effective treatments for it has been a major focus across the pharmaceutical industry.
What Merck Is Paying
SciBrunch will receive $400 million upfront as part of the deal. The company is also eligible for up to $1.73 billion more in milestone payments tied to development and commercial goals.
Merck confirmed the transaction has already closed. The company said it will record a pretax charge of $400 million in its third-quarter 2026 results.
That charge works out to roughly 13 cents per share. Investors will get a clearer picture of the financial impact when Merck reports Q3 earnings.
This deal fits into a broader pattern for Merck. The company has been expanding its cancer drug pipeline ahead of patent expirations on Keytruda later this decade.
Keytruda is Merck’s top-selling immunotherapy drug. Losing exclusivity on it would open the door to competition, so building out other treatments has become a priority.
Where SPR2015 Stands Today
SPR2015 is still in preclinical development. That means it has not yet entered human clinical trials.
Preclinical data released earlier this year showed some promise, though. The drug reduced tumor growth in laboratory and animal models of KRAS G12D-mutant cancers, according to the companies.
That’s an early signal, not a guarantee. Plenty of drugs that perform well in preclinical models never make it through human trials.
Still, the mutation SPR2015 targets is a high-value one in oncology. Landing an effective treatment here could open up multiple cancer indications down the line.
SciBrunch is a privately held, clinical-stage biotech based in China. This deal marks a major moment for the company, given the size of the potential payout.
For Merck, the cost is manageable relative to its overall size. A $400 million charge is a rounding error for a company of Merck’s scale, even if the eventual milestone payments add up.
The full $2.13 billion price tag is only reached if SPR2015 hits every development and commercial milestone along the way. That’s a long road, especially for a drug that hasn’t started human testing.
Merck has not given a timeline for when SPR2015 might enter clinical trials. The company also has not disclosed additional financial terms beyond the upfront and milestone structure.
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