Pfizer Is Set to Buy Merck Cancer Drug Rights for $850 Million

Pfizer is set to pay Merck $850 million for the rights to a new cancer drug. Merck's experimental drug will cost Pfizer as much as $2 billion if it meets regulatory and commercial standards. The class of drug is the same type that Pfizer was attempting to acquire when it made its failed bid for AstraZeneca earlier this year. The latest deal with Merck suggests Pfizer will not renew its efforts with London-based AstraZeneca. Merck shares saw a boost in trading following the news. Pfizer has cut its 2014 earnings forecasts to accommodate the upfront drug payments. Analysts estimate that the market for new immunotherapy drugs may be worth around $35 billion.