Merck & Co, Inc. (NYSE: MRK) is planning to buy all the outstanding shares of OncoImmune for an upfront payment of $425 million in cash. Additionally, the shareholders of OncoImmune will be able to get the sales-based payment upon successfully achieving set targets. OncoImmune has recently disclosed the encouraging results of a Phase III study assessing candidate CD24Fc for the treatment of patients suffering from COVID-19.

The Phase III study unveiled that all the 203 volunteers who have participated in the trial have shown a 60% improvement and the risk of respiratory and death decreased by more than 50%. Before the execution of the agreement, OncoImmune will spin out certain rights and assets which are not related to the CD24Fc program to a new entity.