Merck, Celltech Deal On Asthma Drug

Celltech has entered into what financially could be the biggest agreement ever for a UK biotechnology company, with the announcement that it has signed a letter of intent to collaborate with Merck & Co on the development of its new asthma drug CDP840. The terms of the deal involve payments of up to L31.5 million ($48.8 million) over a period of about five years. Celltech will also regain from Merck rights to metalloproteinase inhibitors which are the subject of a prior collaboration.

CDP840 is a phosphodiesterase (PDE) type IV inhibitor, a class which may have the potential of replacing or sparing steroids in the management of asthma while offering a once-daily oral dosage regimen. Use of steroids causes concerns among many patients and doctors because of the risk of systemic absorption, particularly as many sufferers are children. PDE IV is an enzyme involved in the activation of eosinophils, one of the primary white cells involved in inflammation of the lung in asthma, by preventing the breakdown of intracellular cyclic AMP. There is some evidence that the drug may also reduce the incidence of sudden attacks of breathing difficulty by acting directly on sensory nerves.

CDP840 has completed initial Phase I trials carried out at Guy's Hospital in London, UK, and Phase II trials are expected to start in September. Merck has agreed to finance the much more expensive late Phase II and Phase III stages of product development.