London — British pharmaceutical giant AstraZeneca and US peer Merck said on Thursday that they had agreed on a multibillion-dollar deal to jointly develop key cancer drugs. However, AstraZeneca shares tumbled 15% as investors fretted over disappointing trial results for its next-generation lung cancer treatment. Sentiment took another heavy blow on news that AstraZeneca’s first-half sales were hurt by the loss of US patent protection on two blockbuster drugs. The Merck tie-up illustrates the growing prominence of oncology in the global pharmaceutical sector. "The strategic collaboration is expected to further increase the number of treatment options available to patients," Merck and AstraZeneca said in their joint statement. Merck will pay AstraZeneca up to $8.5bn under the deal struck to develop and commercialise the drugs. Central to the agreement is "a global strategic oncology collaboration to co-develop and co-commercialise AstraZeneca’s Lynparza (olaparib) for multiple cancer ...
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