The Hindu Business Line : Ranbaxy, Merck in pact for anti-infective drugs

New Delhi, May 12 Ranbaxy Laboratories on Monday announced it has signed a collaboration agreement with US-based Merck & Co for drug discovery and clinical development of products in the anti-infective field.

Both would work to develop clinically validated anti-bacterial and anti-fungal drug candidates, with Ranbaxy slated to get an undisclosed upfront sum and more than $100 million for each drug target, depending on successful development and regulatory approval. It will also be entitled to royalties under the five-year deal.

“Ranbaxy will carry out drug discovery and clinical development through phase II ‘a’ clinical trials, with Merck conducting development and commercialisation of drug candidates thereafter,” a company statement added. According to the agreement, the collaboration would begin this year with an initial term of five years and can be extended mutually thereafter by the parties.

“Ranbaxy will be paid an undisclosed upfront sum, with the potential to receive payments totalling more than $100 million associated with the achievement of various research, development and regulatory approval milestones for each target included in the collaboration,” it added. Ranbaxy is also eligible to receive significant royalties on worldwide net sales of any product commercialised under the agreement, it added.

Under the five-year Product Development Agreement, Ranbaxy will carry out anti-bacterial and anti-fungal drug discovery and clinical trials. Thereafter, Merck will conduct development and commercialisatio n of the drugs.

“This collaboration with Merck positions Ranbaxy to extend its capability set and move up the value chain for drug discovery and development,” Ranbaxy Chief Executive Officer and Managing Director, Mr Malvinder Mohan Singh, said. Commenting on the agreement, Merck’s Senior Vice-President of worldwide licensing and external research, Mr Mervyn Turner, said, “By combining strengths and resources both are able to decrease development risk while sharing the potential reward.”