MSD strikes $2.13B deal for SciBrunch’s KRAS G12D drug ahead of Keytruda patent loss

By Vivian Lin · September 30, 2026, 2:28 PM · 3 mins read

MSD is putting $400 million upfront—and up to $1.73 billion more—on the line to license SciBrunch Therapeutics’ KRAS G12D inhibitor SPR2015. The move comes as Keytruda’s patent clock ticks down.

MSD just locked in global rights to SPR2015, a KRAS G12D inhibitor still in preclinical testing. The deal with Shanghai-based SciBrunch Therapeutics could cost MSD up to $2.13 billion. The company confirmed in an official press release that the agreement closed on September 28, 2026. MSD now holds exclusive rights to develop, make, and sell SPR2015 worldwide.

SciBrunch gets $400 million upfront. If all milestones are hit, the total could reach $1.73 billion more. MSD is paying big for a drug that hasn’t reached human trials. The reason is clear. Keytruda’s market exclusivity ends in 2028. MSD needs new drugs in the pipeline. A Reuters financial review shows the deal will hit MSD’s third-quarter 2026 results as a $400 million pre-tax charge, or about $0.13 per share.

KRAS G12D is one of the most common cancer-driving mutations in pancreatic, colorectal, and lung cancers, making it a highly sought-after target for new oncology therapies.

Reuters

SPR2015 is an oral drug meant to block the “on” form of KRAS G12D. This mutation is common in human tumors. MSD cites preclinical data showing SPR2015 stops KRAS G12D-mutant cancer cells from growing. It leaves normal cells alone. The drug showed antitumor effects in animal and patient-derived xenograft models. MSD calls SPR2015 a molecular glue candidate with nanomolar antiproliferative activity in KRAS G12D-mutant cell lines. The company has not shared detailed data or a timeline for clinical trials.

The RAS pathway is now a hot spot for new cancer drugs. Interest spiked after Revolution Medicines’ Rasonque (daraxonrasib) succeeded in Phase III pancreatic cancer trials. Rasonque doubled overall survival and became the first RAS(ON) inhibitor on the market. MSD’s move for SPR2015 is a direct answer to this shift. The company was reportedly considering buying Revolution Medicines for up to $32 billion. That deal never happened.

MSD has a track record with Chinese biotech. It recently signed deals with LaNova Medicines and Sichuan Kelun Biotech. In March, MSD bought a blood cancer drug through a $6.7 billion takeover of Terns Pharma. Last year, MSD spent $19.2 billion on acquisitions, including Verona Pharma and Cidara Therapeutics. The goal is simple. MSD wants to fill revenue gaps as Keytruda’s patent nears expiry.

SPR2015 remains in the preclinical stage, and Merck has not disclosed a timeline for when the candidate will enter clinical trials. The deal adds another KRAS program to Merck’s oncology portfolio and reflects a broader push into Chinese biotech licensing.

Fierce Biotech

China’s biotech sector is now a key player in global drug development. As reported earlier, Western pharma is not just looking for innovation in China. It is ready to pay top dollar for early-stage drugs that could change cancer treatment.

MSD’s pipeline push shows the company knows the blockbuster antibody era is fading. Keytruda’s days are numbered. MSD is betting that targeted drugs like SPR2015 will drive its next phase of growth. The size of this deal, especially for a preclinical drug, sets a new bar for risk and urgency in big pharma’s search for the next cancer breakthrough.

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Vivian Lin

Vivian Lin is Biotech Markets & Transactions Editor at GenoMethods, covering licensing agreements, M&A, biotech financing, company pipelines, strategic partnerships and cross-border transactions. Her reporting connects deal structure and company strategy with the scientific and clinical evidence underlying each biotechnology asset.