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Merck and AstraZeneca: rivals join forces in oncology

Thu. June 04, 2009; Posted: 08:40 AM
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Jun 04, 2009 (Datamonitor via COMTEX) -- MRK | Quote | Chart | News | PowerRating -- Merck & Co. and AstraZeneca have entered into a partnership to study the combination of their two early-stage drugs for solid tumors, which could produce a synergistic therapeutic response and thus increase chances of survival. Given that drug combinations are often used in the management of oncology patients, these types of deals are likely to become increasingly common in the future.

Specifically, this partnership will study the combination of the companies' respective drugs: Merck & Co's MK-2206 and AstraZeneca's AZD6244. It is thought that the combination of these two drugs will far exceed the sum of its parts. By targeting two different molecular pathways together, chances of improving cancer survival rates increase. Clinical development costs will be split evenly, while Phase I trials results will mark the first milestone at which the companies will assess how to proceed.

Drug combinations are the norm in oncology treatment, and R&D deals are often necessary to fully realize their potential. Usually, however, partnerships in this field occur when one or more of the drugs has entered late-stage development or received marketing approval. Therefore, Merck & Co.'s and AstraZeneca's partnership is unusual in that both compounds are in such early stages and years away from reaching the market.

Despite the hurdles of two large companies working together, the synergy of collaborations can speed up the development of promising drugs. Furthermore, they allow firms to share the costs and risks of development, in addition to boosting capabilities and expertise in a specific area. Given these considerable benefits, it is a pleasant surprise to see more competing firms joining forces to increase R&D output.

Going forward, this could be the beginning of a new trend as more of these deals are expected in the future. Indeed, in April 2009, GlaxoSmithKline teamed up with Pfizer in a joint venture which will unite their respective HIV portfolios and boost R&D in the sector. This emerging trend is particularly pertinent for oncology, where there are over 800 molecules in development and, with a greater understanding of molecular biology, the increasing appeal of combining drugs which target complementary pathways.

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For full details on Merck & Co (MRK) click here. Merck & Co (MRK) has Short Term PowerRatings of 5. Details on Merck & Co (MRK) Short Term PowerRatings is available at This Link.

    


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