ChemGenex wins A$1 M diabetes trial contract

Australian medical research firm ChemGenex Pharmaceuticals says it has signed an A$1.0 million ($736,876) contract with German drugmaker Merck KGaA to conduct preclinical trials of an, as yet, unannounced, developmental diabetes treatment. The German firm holds an 8.5% stake in ChemGenex.

Under the terms of the deal, ChemGenex will run trials of the compound, examining it as treatment for diabetic insulin resistance and complications, in a program extending through to December 31, 2008. Chemgenex says that the agreement follows the successful completion of three target discovery projects which the two firms have recently undertaken (Marketletters passim).

Greg Collier, ChemGenex' chief executive, said: "this new agreement is a strong endorsement by Merck of the value they see in ChemGenex' diabetes expertise." Merck's executive vice president of preclinical R&D, Inge Lues, said that the accord grants access to ChemGenex' diabetes animal models and cutting-edge research capabilities. Dr Lues added that Merck wished to further the collaboration to include several potential small-molecule drugs.