(Reuters) -Merck has licensed an early-stage cancer drug from a China-based biotech in an up to $3.3 billion deal, two months after a similar therapy from Summit Therapeutics outperformed its blockbuster Keytruda in a late-stage trial in the country.

Merck (NYSE:MRK) and LaNova Medicines announced Thursday an agreement under which the U.S. pharmaceutical giant is expected to obtain licensing rights to a cancer candidate known as LM-299 from the Chinese biotech in a deal worth up to $3.

Merck & Co. licensed an experimental cancer antibody from a closely held Chinese company in a deal worth $588 million upfront, plus as much as $2.7 billion in milestone payments.