Merck KGaA and Pfizer have achieved a significant milestone in oncology with the US Food and Drug Administration's accelerated approval of Bavencio (avelumab) for metastatic Merkel cell carcinoma (mMCC), marking their entry into the competitive cancer immunotherapy market.
The approval of Bavencio, a human anti-PD-L1 antibody, represents a breakthrough for patients with mMCC, an aggressive form of skin cancer with poor survival rates. Currently, fewer than 50% of patients survive beyond one year, and the five-year survival rate falls below 20%.
Clinical Significance and Market Position
The FDA's decision makes Bavencio the first approved therapy specifically for mMCC. The accelerated approval was based on compelling tumor response and duration of response data, though further confirmatory studies will be required to maintain the approval status.
The drug will be co-marketed in the United States by EMD Serono, Merck KGaA's US biopharmaceutical division, and Pfizer. This approval positions Bavencio as the fourth checkpoint inhibitor in the market, following established players Bristol-Myers Squibb, Merck & Co, and Roche.
Strategic Partnership and Development
The development of Bavencio stems from a landmark 2014 alliance between Pfizer and Merck KGaA. The collaboration involved an upfront payment of $850 million from Pfizer, with additional regulatory and commercial milestone payments potentially reaching $2 billion. Both companies share equally in development costs, marketing expenses, and revenue from anti-PD-L1 and anti-PD-1 products resulting from their partnership.
Future Development and Market Potential
Industry analysts project Bavencio's peak sales to reach between $4 and $6 billion. While this falls short of competitor Bristol-Myers Squibb's Opdivo, it represents significant potential revenue for both companies as they face patent expirations in their existing portfolios.
The development program for Bavencio extends beyond mMCC, with multiple late-stage trials underway. Key areas of focus include:
- First-line lung cancer therapy
- Gastric cancer treatment
- Ovarian cancer applications
The companies are particularly interested in the valuable first-line lung cancer indication, where Merck & Co's Keytruda has already established a presence following Bristol-Myers Squibb's Opdivo's unexpected setback in this space.
Competitive Landscape
The immunotherapy market continues to evolve rapidly. Roche's anti-PD-L1 therapy has recently gained approval for second-line lung cancer treatment in specific mutation cases. Meanwhile, AstraZeneca is pursuing a different strategy with durvalumab, focusing on combination therapy with their CTLA-4 checkpoint inhibitor, tremelimumab, with plans to file for lung cancer indications in the latter half of the year.
