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Merck & Co. Inc. MRK, +0.12% said Thursday that it entered into an agreement with Sichuan Kelun Pharmaceutical Co. Ltd. 002422, +10.00% to develop seven new cancer therapies. Merck will pay the Chinse biotech an upfront payment of $175 million, with milestone payments worth up to $9.3 billion. Merck will also make an equity investment in the company.

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