Pharma BD Deal Intelligence

Merck & Co. Inc. / Eisai Co., Ltd.

2018 · Co-Development · $5.8B · Complete

A $5.76B global oncology collaboration that paired Eisai's Lenvima with Merck's Keytruda across five cancer types, including endometrial cancer, hepatocellular carcinoma, and NSCLC. Merck fronted $300M upfront plus up to $4.36B in milestones, with Eisai retaining Lenvima sales bookings; the partnership's goals were only partially achieved.

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Merck and Eisai entered a global strategic oncology collaboration to jointly develop and commercialize Lenvima (lenvatinib) as monotherapy and in combination with Keytruda (pembrolizumab). Merck paid $300M upfront, up to $650M in option rights, $450M in R&D reimbursement, plus up to $4.36B in milestones. Eisai books all Lenvima sales globally with profits shared equally.

Did it work? Outcome assessment

Strategic verdict
Partially Achieved
Financial impact
Accretive
Merck and Eisai entered a global strategic oncology collaboration for Lenvima in March 2018. Merck paid $300M upfront plus potential milestone payments. Lenvima US sales grew to approximately $1.5B by FY2025 (Eisai fiscal year). The Keytruda+Lenvima combination received approvals in endometrial cancer (2019 accelerated, 2021 full) and renal cell carcinoma (2021). However, not all combo indications succeeded - Keytruda+Lenvima failed in NSCLC and liver cancer subtype trials. Revenue is shared between Merck (outside Japan/Asia) and Eisai.
Pipeline outcome
Mixed
Keytruda+Lenvima combination succeeded in: advanced endometrial carcinoma (full approval 2021), advanced renal cell carcinoma (approval 2021, with 61% reduction in progression/death risk vs Sutent). However, the combination failed in: NSCLC (two Phase 3 failures), hepatocellular carcinoma subtype (LEAP-002 survival miss). The mixed results across tumor types mean the partnership has not achieved its full potential, but the two successful indications generate meaningful revenue.

Key facts

Disease & market context

NSCLC

200K US cases/yr · $30.0B Global NSCLC therapeutics

Disease Overview

NSCLC accounts for ~85% of lung cancers. Treatment has been revolutionized by immunotherapy and targeted therapies for driver mutations (EGFR, ALK, ROS1, KRAS G12C). Checkpoint inhibitors are standard first-line for most patients without actionable mutations.

Standard of Care & Competitive Landscape

No driver mutation: pembrolizumab +/- chemo. EGFR+: osimertinib. ALK+: alectinib, lorlatinib. KRAS G12C: sotorasib. Key players: Merck (Keytruda $25B+), Roche (Tecentriq), AZ (Tagrisso $5B+, Imfinzi), Pfizer (Lorbrena), Amgen (Lumakras).

Renal Cell Carcinoma

82K US cases/yr · $8.0B Global RCC therapeutics

Disease Overview

RCC accounts for ~90% of kidney cancers. IO-TKI combinations have become standard first-line for advanced disease.

Standard of Care & Competitive Landscape

First-line: pembrolizumab + lenvatinib, nivolumab + cabozantinib, or nivolumab + ipilimumab. Key players: Merck/Eisai (Keytruda+Lenvima), BMS (Opdivo), Exelixis (Cabometyx), Pfizer (Inlyta).

Endometrial Cancer

67K US cases/yr · $3.0B Global endometrial cancer therapeutics

Disease Overview

Endometrial cancer is the most common gynecologic cancer. The lenvatinib + pembrolizumab combination has become standard for advanced/recurrent MSS endometrial cancer. Dostarlimab approved for dMMR/MSI-H.

Standard of Care

Early: surgery +/- radiation. Advanced: carboplatin/paclitaxel + pembrolizumab. MSS: lenvatinib + pembrolizumab. dMMR/MSI-H: dostarlimab or pembrolizumab. Key players: Merck/Eisai (Keytruda+Lenvima), GSK (Jemperli).

Head and Neck Cancer

66K US cases/yr · $3.0B Global HNSCC therapeutics

Disease Overview

HNSCC is driven by tobacco/alcohol or HPV infection. Pembrolizumab has become standard first-line for recurrent/metastatic disease.

Standard of Care

Recurrent/metastatic: pembrolizumab +/- chemo (KEYNOTE-048). Locally advanced: cisplatin + radiation. Key players: Merck (Keytruda), BMS (Opdivo).

Hepatocellular Carcinoma

42K US cases/yr · $4.0B Global HCC therapeutics

Disease Overview

HCC is the most common primary liver cancer, often arising from cirrhosis. Atezolizumab + bevacizumab and durvalumab + tremelimumab have replaced sorafenib as standard first-line systemic therapy.

Standard of Care

First-line: atezolizumab + bevacizumab or durvalumab + tremelimumab. Lenvatinib + pembrolizumab combination also approved. Key players: Roche (Tecentriq+Avastin), AZ (Imfinzi+Imjudo), Eisai/Merck (Lenvima+Keytruda).

Deal timeline

Related deals — scored

DealYearValueOutcome
Merck & Co. Inc. / Eisai Co., Ltd. (this deal)2018$5.8B83
Merck & Co. Inc. / Acceleron Pharma Inc.2021$11.5B90
Merck & Co. Inc. / Peloton Therapeutics Inc.2019$2.2B88
Merck & Co. Inc. / AstraZeneca PLC2017$8.5B87
Merck & Co. Inc. / Moderna, Inc.2022$250M86
Merck & Co. Inc. / Moderna, Inc.2016$250M84
Merck & Co. Inc. / Prometheus Biosciences Inc.2023$10.8B77

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