Tokyo: Shares in Japan’s Daiichi Sankyo soared on Friday after the pharma group announced a cancer drug deal with Merck worth up to $22 billion.

Under the agreement announced by both firms, US giant Merck will pay Daiichi for the rights to three cancer drugs in development.

Daiichi shares briefly surged as much as 18 percent on the announcement and at midday were up 12.9 percent at 4,041.00 yen.

The deal will combine Daiichi’s expertise and technology with Merck’s “deep experience in oncology and clinical development capabilities… for patients across multiple types of cancer”, a joint statement said.

The companies will jointly develop and potentially commercialise the three drugs worldwide, except in Japan where Daiichi will maintain exclusive rights.

Merck will make upfront payments of more than $4 billion, with “total potential consideration across the three programs is up to $22 billion”, the firms said.

AFP