Neurogen and Merck form pain drug alliance
US companies Neurogen Corporation and Merck & Co. have formed an exclusive worldwide alliance to research, develop and commercialise novel small molecule medicines which work by targeting the vanilloid receptor (VR1), a key integrator of pain signals in the nervous system.
US companies Neurogen Corporation and Merck & Co. have formed an exclusive worldwide alliance to research, develop and commercialise novel small molecule medicines which work by targeting the vanilloid receptor (VR1), a key integrator of pain signals in the nervous system.
It is believed that in addition to playing a central role in many pain conditions, VR1 may also play a role in other disorders such as urinary incontinence.
The alliance enables Merck, through a subsidiary, and Neurogen to pool VR1 drug candidates previously discovered by each company and combine their ongoing VR1 programmes to form a global research and development collaboration. The parties will form a joint steering committee to oversee the research collaboration. Merck will fund the research and development phases of the collaboration and will have the exclusive responsibility for the commercialisation of collaboration drugs.
Assuming the collaboration receives regulatory approval, Merck will make a $15m license fee payment to Neurogen and purchase $15m of Neurogen common stock. In addition, during the first two years of the agreement, Merck will provide Neurogen with research funding and license maintenance payments totalling $12m. Merck will have the right to extend the research programme for up to three additional years, subject to certain required levels of funding and certain termination rights of Neurogen.
Neurogen will be eligible to receive research, development, and approval milestone payments of up to $118m for the successful commercialisation of a collaboration drug for a single therapeutic indication. Merck will pay to Neurogen royalties on the sale of products from the collaboration.
'Combining our efforts and drawing on the strength of Merck's clinical and commercial expertise will enable us to more rapidly bring new VR1 drugs forward,' said Dr William H. Koster, president and ceo of Neurogen. 'Drugs acting on this target - an important in-tegrator of pain signals - hold the promise of making a real difference in the lives of patients suffering from many inflammatory pain states.'