Pharma BD Deal Intelligence
A $2.85B co-development deal that gave Pfizer and Merck KGaA shared rights to avelumab across Merkel cell carcinoma, urothelial carcinoma, and other solid tumors. The anti-PD-L1 asset found a real niche in Merkel cell carcinoma, though it never became a broad-spectrum immunotherapy contender against Keytruda or Opdivo.
Pfizer partnered with Merck KGaA to co-develop and co-commercialize avelumab (anti-PD-L1) across multiple oncology indications in a deal worth up to $2.85B.
Metastatic Merkel cell carcinoma (mMCC) is a small but high-value orphan oncology segment (~2,500 US cases/year) where IO was transformational. Anti-PD-L1 mAbs (Bavencio's direct MOA): Merck KGaA/Pfizer's Bavencio (avelumab) is FDA-approved (2017) as first immunotherapy for metastatic MCC based on JAVELIN Merkel 200; Bavencio 2024 global sales were approximately EUR 700M across all indications, with MCC a minority contributor; Roche's Tecentriq (atezolizumab) has limited MCC activity; AstraZeneca's Imfinzi (durvalumab) not approved in MCC. Anti-PD-1 mAbs (competing IO class, dominant share): Merck's Keytruda (pembrolizumab, approved 2018 in recurrent locally advanced/metastatic MCC via KEYNOTE-017), Regeneron/Sanofi's Libtayo (cemiplimab, Phase 2 MCC data but not labeled), and BMS's Opdivo (nivolumab, CheckMate 358 Phase 2 but not labeled) compete directly; Keytruda's unmatched oncology franchise ($29.5B 2024) and clinician familiarity have captured majority mMCC 1L share despite Bavencio's first-approval advantage. Chemotherapy (historical SOC): etoposide/platinum doublets, topotecan — largely displaced by IO. Emerging: TIL therapy and TCR-T for virus-associated (MCPyV+) disease (investigational). For a commercial lead, Bavencio's mMCC franchise is a small, defensible niche but Keytruda and (increasingly) Libtayo have eroded share; the MCC indication alone does not justify franchise-scale investment.
Bavencio 1L maintenance has been the dominant 1L maintenance strategy in advanced urothelial carcinoma — but the paradigm is now under major threat from chemo-IO ADC 1L combos. Anti-PD-L1 maintenance mAbs (Bavencio's direct MOA): Merck KGaA/Pfizer's Bavencio (avelumab) 1L maintenance approved 2020 post platinum-based chemo based on JAVELIN Bladder 100 (OS benefit vs. BSC); Roche's Tecentriq (atezolizumab, IMvigor130 failed 1L combo) and AstraZeneca's Imfinzi (durvalumab) have no 1L maintenance UC label. Anti-PD-1 mAbs (displacing class in frontline): Merck's Keytruda (pembrolizumab, $29.5B 2024) — KEYNOTE-A39 / EV-302 combined Keytruda + Padcev (enfortumab vedotin) in 1L mUC, showing OS ~31.5 months vs. 16 months for chemo (67% PFS reduction), now the preferred 1L regimen and rapidly collapsing the platinum-chemo → Bavencio-maintenance paradigm. Nectin-4 ADC (rising 1L partner): Astellas/Pfizer's Padcev (enfortumab vedotin) 2024 net sales approximately $1.6B, now part of 1L SOC in combination with Keytruda. HER2 ADC (later-line): AstraZeneca/Daiichi's Enhertu (trastuzumab deruxtecan) in HER2+ UC. FGFR inhibitors: J&J's Balversa (erdafitinib) in FGFR-altered disease. Platinum chemo (displaced backbone): gemcitabine + cisplatin/carboplatin historically defined 1L. For a commercial lead, Bavencio 1L maintenance is in structural decline — Keytruda+Padcev's OS dominance in EV-302 has moved patients away from the platinum-chemo-to-avelumab pathway, leaving Bavencio for cisplatin-ineligible or Padcev-ineligible segments.
First-line advanced RCC is a competitive IO + TKI combo market where Bavencio + axitinib holds a minority position. IO + VEGFR-TKI combos (Bavencio's direct class): Merck KGaA/Pfizer's Bavencio (avelumab) + Pfizer's Inlyta (axitinib) approved 2019 based on JAVELIN Renal 101 (PFS benefit, OS immature); Merck's Keytruda (pembrolizumab) + Pfizer's Inlyta (axitinib, KEYNOTE-426 OS benefit), Keytruda + Eisai's Lenvima (lenvatinib, CLEAR OS benefit), and BMS's Opdivo (nivolumab) + Exelixis's Cabometyx (cabozantinib, CheckMate-9ER OS benefit) are the competing IO+TKI triplets. The Keytruda combos have claimed the majority of 1L share given Keytruda's brand equity and CLEAR's longer PFS. IO + IO doublet (alternative 1L class): BMS's Opdivo + Yervoy (nivolumab + ipilimumab, CheckMate-214, preferred in intermediate/poor-risk sarcomatoid). HIF-2alpha inhibitor (emerging class): Merck's Welireg (belzutifan, VHL-disease approved 2021 + RCC 2L+ approved 2023, LITESPARK-005, 2024 sales approximately $400M rising). VEGFR-TKI monotherapy (incumbent/historical): Pfizer's Sutent (sunitinib, genericized), Exelixis's Cabometyx (monotherapy, approximately $2.0B 2024), Bayer's Nexavar (sorafenib, generic), Novartis's Votrient (pazopanib, generic). Anti-VEGF mAb: Roche's Avastin (bevacizumab, legacy). For a commercial lead, Bavencio+Inlyta's 1L RCC franchise has been structurally marginalized by Keytruda+Lenvima's OS-superior CLEAR data; share loss is ongoing.
Pfizer paid $850M upfront for co-development and co-commercialization of avelumab across oncology.
Pfizer exited; Merck KGaA acquired exclusive worldwide rights. 15% royalty to Pfizer on net sales.
Bavencio approved for MCC and urothelial carcinoma. Solid growth ex-US but moderate US performance. Pfizer exited.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Pfizer Inc. / Merck KGaA (this deal) | 2014 | $2.9B | 55 |
| Pfizer Inc. / BioNTech SE | 2020 | $748M | 100 |
| Pfizer Inc. / FoldRx Pharmaceuticals | 2010 | — | 99 |
| Pfizer Inc. / Medivation Inc. | 2016 | $14.0B | 86 |
| Pfizer Inc. / Wyeth | 2009 | $68.0B | 86 |
| Pfizer Inc. / Warner-Lambert Company | 2000 | $90.0B | 83 |
| Pfizer Inc. / Arvinas, Inc. | 2021 | $2.4B | 77 |
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