Merck (MRK) said Thursday it has acquired an exclusive global license from LaNova Medicines to develop, manufacture, and commercialize LM-299, an investigational PD-1/VEGF bispecific antibody.

As part of the deal, LaNova will receive a $588 million upfront payment and may earn up to $2.7 billion in milestone payments for development, regulatory, and commercial achievements across various indications, Merck said.

The deal is expected to close in Q4, subject to Hart-Scott-Rodino Act clearance and other conditions, Merck added.

Merck stock was up 0.4% in recent premarket activity.

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