Addex and Merck & Co enter $170.5M R&D accord on allosteric modulator PD drugs

Switzerland's Addex Pharmaceuticals has entered an exclusive collaboration and license agreement with US drug major Merck & Co worth up to $170.5 million, aiming to develop a new class of orally-available drugs, initially as candidates for the treatment of Parkinson's disease, and potentially other undisclosed indications. The firms will discover and develop positive allosteric modulators, a type of agent that enhances the effect of a drug bound at the metabotropic glutamate receptor-4.

Under the terms of the deal, Addex will receive $3.0 million upfront and is eligible for up to $106.5 million in R&D and regulatory milestones for the first product developed for multiple indications. Additional milestones of up to $61.0 million would be payable if a second and third product is developed. Addex is eligible to receive undisclosed royalties on sales of any products resulting from this accord. On the day of the news, December 3, shares in the Geneva-based company increased 12.3% to 41 Swiss francs.

The two firms will collaborate on preclinical development. Merck will be responsible for clinical activities. Addex has an option to co-promote in certain European Union countries and will participate in the joint oversight committee for clinical development.