NeuroMed/Merck & Co enter drug accord

Canada's Neuromed Pharmaceuticals and USA-based Merck & Co have signed a research collaboration and license agreement for R&D and potential commercialization of novel compounds for the treatment of pain and other neurological disorders, in a deal that includes Neuromed's lead compound, the inevstigational painkiller NMED-160, which is currently in Phase II development.

Under the terms of the agreement, Neuromed has granted an exclusive worldwide license to develop and commercialize NMED-160 and other compounds that selectively target the N-type calcium channel. In return, Merck will make a $25.0 million initial cash payment and provide research funding to Neuromed, for two years with the option to renew for two more years. The drug major is also responsible for all development costs and activities and NMED-160's first launch would trigger it to make milestone payments totaling $202.0 million, rising to $450.0 million for more indications. Further financial details were not disclosed.