Pharmaceutical Industry Roundup: Major Investments, Collaborations, and Drug Approvals
Merck Expands U.S. Manufacturing with $3 Billion Facility
Merck & Co. has broken ground on a new $3 billion manufacturing facility in Elkton, Virginia, marking a significant expansion of its domestic production capabilities. The 400,000-square-foot site, dubbed a "Center of Excellence," will produce both active pharmaceutical ingredients and drug products. This facility is part of Merck's broader $70 billion investment initiative to bolster U.S. manufacturing and R&D operations, which began in early 2025.
The Elkton site is expected to create over 500 full-time positions and 8,000 construction jobs, underlining its economic impact on the region. This investment highlights Merck's commitment to strengthening its domestic supply chain and enhancing its production capacity for future pharmaceutical developments.
Strategic Collaborations and Licensing Deals
Iambic Therapeutics Partners with Jazz Pharmaceuticals
AI-driven biotech company Iambic Therapeutics has announced a research collaboration and drug supply agreement with Jazz Pharmaceuticals. The partnership will focus on studying a combination of Jazz's HER2-targeted bispecific antibody Ziihera with Iambic's experimental brain-penetrating tyrosine kinase inhibitor IAM1363. This combination will be evaluated in HER2-positive breast cancer patients who have previously been treated with Enhertu.
Lundbeck and Contera Pharma Join Forces on Neurological Therapies
Lundbeck and Contera Pharma have entered into a strategic research collaboration aimed at accelerating the development of oligonucleotide-based medicines for neurological conditions. Contera will provide its RNA discovery platform to identify and develop novel targeted therapies. The agreement includes an upfront payment and research funding for Contera, with Lundbeck retaining options for late-stage development and global commercialization. Contera is eligible for milestone payments and tiered royalties.
FDA Approvals and Clinical Developments
Roche has received FDA approval for its lymphoma drug Gazyva to treat lupus nephritis, a kidney-related complication of systemic lupus erythematosus. The approval was based on a Phase 3 trial that demonstrated superior renal response rates when Gazyva was added to standard therapy. In the study, 46% of patients in the Gazyva group achieved renal response, compared to 33% in the placebo group.
Meanwhile, Viridian Therapeutics has secured significant funding for its thyroid eye disease drugs. DRI Healthcare Trust has agreed to pay up to $300 million for royalty rights to veligrotug and VRDN-003, both currently in Phase 3 trials. Viridian expects topline results for VRDN-003 in early 2026 and aims to seek FDA approval by the end of that year if the results are positive.
References
- Iambic partners with Jazz; Merck breaks ground on $3B plant
The biotechs will assess a combination of two drugs against HER2-positive breast cancer. Elsewhere, Merck unveiled the latest piece of its more than $70 billion domestic manufacturing investment.
Explore Further
What are the specific key terms of the collaboration between Lundbeck and Contera Pharma, including the milestone payments and royalty structure?
What is the efficacy and safety data of Iambic Therapeutics' IAM1363 when combined with Jazz Pharmaceuticals' Ziihera for HER2-positive breast cancer?
How does Merck's $3 billion investment in the Elkton facility compare to similar manufacturing expansions by its competitors in the U.S.?
What are the competitive advantages of Roche's Gazyva for lupus nephritis compared to other therapies currently approved or in development?
Are there other companies pursuing licensing deals similar to Viridian Therapeutics’ agreement with DRI Healthcare Trust for thyroid eye disease treatments?