Merck to Buy Cancer Drug Company VelosBio for $2.75 Billion (2)

Merck & Co. agreed to buy VelosBio Inc. for $2.75 billion in cash, moving to bolster its lineup of cancer therapies.

Closely held VelosBio, based in San Diego, has a treatment for certain blood cancers and tumors in clinical trials. The drug is a monoclonal antibody that binds to cancer cells, then releases a toxic agent into them.

Merck shares rose as much as 2.8% in New York on Thursday after the deal was announced. The stock is down 9.7% this year.

Like several other pharmaceutical giants, Merck has been involved in the hunt for vaccines and new drugs ...