Germany's Merck KGaA announced on Thursday that it has agreed to utilize the drug research services of Boston-based Valo Health, with the two companies collaborating on Parkinson's disease and related conditions. For Valo Health, the potential value of this partnership could exceed $3 billion.

The collaboration focuses on identifying promising therapeutic molecules, highlighting Merck's ambition to revitalize growth in its pharmaceutical division following its $3.9 billion acquisition of rare cancer treatment specialist SpringWorks.

Valo Health stated in a release that the deal includes upfront payments, milestone payments tied to research achievements—potentially totaling over $3 billion—as well as royalties and research funding support.

The family-controlled Merck Group, which has faced high-profile setbacks in late-stage drug trials (such as last year's decision to discontinue development of the head and neck cancer drug Xevinapant), is now keen to strengthen its drug development pipeline.

Merck noted in its statement that the partnership will help accelerate progress in developing its most promising drug candidates.

The diversified group also operates in other sectors: one being chemicals for semiconductor production (a business benefiting from AI-related investments), and the other being laboratory supplies for biotech drug manufacturing.

Founded in 2019, Valo Health is a biotech company that primarily supports drug discovery and development through data analytics and artificial intelligence technology.

Valo Health emphasized that its medical research services are built on over 17 million patient records and biological samples, with strict data privacy protections in place.

An estimated 1 million people in the U.S. alone suffer from Parkinson's disease, with current treatments only alleviating symptoms. The pharmaceutical industry has long sought more effective therapies but has encountered repeated setbacks.

For Merck, this collaboration marks a return to Parkinson's disease research. The company previously faced a critical late-stage trial failure in 2006 and terminated a partnership with Newron Pharmaceuticals on another Parkinson's candidate drug in 2011.

Valo Health has been active in this field as well: in September, it received a research grant from The Michael J. Fox Foundation, a prominent organization dedicated to Parkinson's research, to explore new treatment approaches.