Merck KGaA Signs $2 Billion Neurology Drug Pact With Skyhawk

Merck KGaA agreed to collaborate with Skyhawk Therapeutics Inc. to develop neurological therapies in a deal that could be valued at more than $2 billion as the German company seeks to bolster its drug pipeline.

The work with Massachusetts-based Skyhawk will focus on the discovery of RNA-targeting small molecules for neurological conditions with high unmet medical need, according to a statement Monday. The deal value includes unspecified upfront and milestone payments, along with the potential for royalties on future sales.

Skyhawk will lead discovery and preclinical development efforts using its proprietary technology, after which Merck would take over the development ...