Merck KGaA has entered into a major strategic collaboration with Valo Health to use Valo’s AI-powered human causal biology platform for discovering and developing new treatments for Parkinson’s disease and related disorders. The deal is valued at up to USD 3 billion, including upfront fees, milestone payments, and future royalties.

Through this partnership, Merck will gain access to Valo’s extensive database built from millions of de-identified patient records and biological samples. Valo will apply its closed-loop drug discovery system to generate and optimize preclinical compounds targeting novel mechanisms involved in neurodegenerative diseases.

Merck’s Global Head of Neurology & Immunology Research, Amy Kao, said the partnership will help sharpen target selection and bring promising drug candidates forward faster and with greater precision. Valo CEO Dr. Brian Alexander noted that combining AI, large-scale human data, and Merck’s development expertise creates a powerful approach to tackling complex brain disorders.

The agreement highlights Merck KGaA’s push to strengthen its pharmaceutical pipeline after recent setbacks and reflects a broader industry trend of integrating advanced AI tools to accelerate drug research and development.