Merck MRK announced that it has entered into an exclusive licensing deal with China-based privately-held biotech company LaNova Medicines for the latter’s PD-1xVEGF targeting bispecific antibody candidate,

In a move to safeguard the company’s dominant position in cancer, Merck said Thursday it will license a new cancer drug from LaNova Medicines, a Shanghai-based firm, for $588 million upfront and as much as $2.7 billion in potential milestone payments.

As Merck prepares for its blockbuster immunotherapy Keytruda to face generic competition, it’s investing in a new cancer drug from LaNova.

Merck has licensed an early-stage cancer drug from a China-based biotech in an up to $3.3 billion deal, two months after a similar therapy from Summit Therapeutics outperformed its blockbuster Keytruda in a late-stage trial in the country.

In a move to safeguard its dominant position in cancer treatments, Merck agreed to license a drug from a Chinese company

Merck & Co. licensed an experimental cancer antibody from a closely held Chinese company in a deal worth $588 million upfront, plus as much as $2.7 billion in milestone payments.

Merck (NYSE:MRK) and LaNova Medicines announced Thursday an agreement under which the U.S. pharmaceutical giant is expected to obtain licensing rights to a cancer candidate known as LM-299 from the Chinese biotech in a deal worth up to $3.