Merck struck a multi-year collaboration with Quotient Therapeutics to use its somatic genomics platform to identify drug targets in inflammatory bowel disease. Merck will pay $20 million upfront, with additional potential development, regulatory, and commercial milestone payments that could bring the total value above $2 billion. Quotient, launched in 2022 by Flagship Pioneering, uses nanorate genome sequencing to uncover somatic mutations in disease-driving cells and apply AI analysis to nominate druggable proteins. The company said it has generated data across 15 diseases and previously partnered with Pfizer on cardiovascular and renal targets. The Merck deal follows Quotient’s recent partnerships with GSK for targets in respiratory and liver disease and underscores how large pharmas are increasingly outsourcing target discovery to platform-focused biotech partners. It also adds to Merck’s expanding immunology exposure as the company seeks new entrants to its pipeline in chronic inflammatory indications. The agreement’s structure highlights a growing contracting model where pharma funds platform access up front, then scales payments based on progress through development milestones.