Merck & Co and Ranbaxy in drug discovery/development accord

US drug major Merck & Co has signed a strategic product development agreement with leading Indian firm Ranbaxy Laboratories providing for a drug discovery and clinical development collaboration in the field of anti-infectives. Under the terms of the deal, Ranbaxy will carry out drug discovery and clinical development through Phase IIa, with Merck responsible for development and commercialization of drug candidates thereafter. The Indian firm will be paid an undisclosed upfront sum with the potential to receive more than $100.0 million on the achievement of various milestones. Ranbaxy could also be eligible for significant royalties on worldwide net sales of any products commercialized under the accord.