Big Pharma companies are remaining ‘disciplined’ about their M&A deals, with Merck & Co apparently shying away from a $40bn gamble on Seagen, but the need for replenished pipelines remains.

The preclinical start-up is identifying allosteric binders that can inhibit or activate metabolic proteins. Atavistik will focus on genetically defined diseases then test its candidates in broader populations.

The company set a $26,400 per month list price for the HIF-2α inhibitor in its first US FDA-approved indication of VHL disease-associated tumors, but the drug is being studied in broader populations.

Adjuvant renal cell carcinoma is a potentially lucrative indication for any checkpoint inhibitor; Merck & Co. flagship Keytruda is the first to demonstrate benefit in a Phase III study, although rivals are in pursuit.