Addex and Merck sign licensing agreement for schizophrenia drug

Jan 03, 2008 (Datamonitor via COMTEX) -- MRK | charts | news | PowerRating -- Addex Pharmaceuticals has entered into an exclusive worldwide license agreement with Merck & Co., to develop ADX63365, an orally available drug candidate for the potential treatment of schizophrenia and other undisclosed indications.

Under the terms of the agreement, Addex will receive $22 million upfront and is eligible for up to $455 million in research, development, regulatory and sales milestones for the first product developed for two indications and up to $225 million in additional development, regulatory and sales milestones for a second product developed in two indications. Addex is eligible to receive royalties on sales of any products resulting from this collaboration. In addition, Addex has an option to co-promote in certain EU countries and will participate in the joint oversight committee for further development that will be led by Merck.

ADX63365, currently in preclinical development, is a positive allosteric modulator (PAM) that targets the metabotropic glutamate receptor 5 (mGluR5), which is believed to be important as a target for the treatment of schizophrenia and other conditions. The deal also includes mGluR5 PAM backup compounds discovered by Addex.

Darryle Schoepp, senior vice president and franchise head, Neuroscience, at Merck Research Laboratories, said: "Through this second collaboration with Addex we have now gained access to a promising drug candidate targeting this receptor that potentially allows us to address an area of high medical importance where current therapies are clearly inadequate."

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