Merck & Co gets Paratek's antibiotic in $127M deal

US drugmakers Merck & Co and Paratek Pharmaceuticals have entered into an exclusive, worldwide collaborative development and license agreement for PTK 0796, a novel, broad-spectrum aminomethylcycline antibiotic with oral and intravenous formulations, which is currently in Phase I clinical testing.

Under the terms of the deal, Merck will provide undisclosed upfront funding and assume primary responsibility for clinical development of the IV and oral formulations of the agent. The pharmaceutical major has the right to market such products worldwide.

Paratek will participate in clinical development and be eligible to receive payments upon achievement of certain milestones, which could total as much as $127.0 million if PTK 0796 is approved for marketing. Paratek will also receive royalties on net sales and have the opportunity to co-promote the IV formulation in the USA.