The Merck Group announced on Monday that it is acquiring OncoImmune Inc. for an upfront payment of $425 million in cash. OncoImmune previously announced that its drug CD24Fc showed a 60% higher probability of improvement in patients with severe or critical COVID-19 compared to placebo in a Phase 3 study.

According to the details of the deal, OncoImmune will "spin-out certain rights and assets unrelated to the CD24Fc program to a new entity" before the acquisition is complete, which will be owned by its existing shareholders. Merck will also invest $50 million, and become a minority shareholder, in the new entity. The transaction is expected to be closed before the end of the year.