AZ and Merck & Co to develop early-stage cancer drugs

Anglo-Swedish drug major AstraZeneca and the USA's Merck & Co have signed an accord to develop a cocktail of cancer drugs composed of two  investigational compounds, MK-2206 and AZD6244 . The deal is unusual as  it is seeking to test a combination of agents that are not yet approved  individually. Combining molecules at such an early stage of development  could bring potential synergistic benefits sooner to patients, the firms  say

Preclinical evidence indicates the two compounds could enhance each  other's anticancer properties. Under the terms of the deal, AstraZeneca  and Merck will work together to evaluate co-administration in a Phase I  trial for the treatment of solid cancer tumors. All development costs  will be shared jointly. Following the study, the companies will consider  opportunities for further development.

WBB Securities analyst Steve Brozak said the deal had a strong  scientific rationale but was also a sign of industry consolidation, with  companies that have merged with rivals now looking for new ways to  reduce risk and cut costs (see page 26). Earlier this year, Merck agreed  to buy US drug major Schering-Plough for $41.1 billion (Marketletter  March 16).