Pharmacopeia enters R&D pact with Organon

US drugmaker Pharmacopeia has earned a $15.0 million upfront payment by entering a collboration accord with Organon, the human health care unit of Dutch firm Akzo Nobel. The firms' R&D accord will discover, develop and commercialize therapeutic products across a broad range of indications, including neuroscience and immunology. Under the terms of the alliance, Pharmacopeia will receive an payments in research funding over the five-year term of the research portion of the alliance.

Under the terms of the deal, both firms will work together to generate development compounds addressing targets of mutual interest using each other's skills. Compounds ready to enter development will be primarily handled by Organon, though the agreement provides Pharmacopeia the option to co-develop and co-commercialize therapeutic candidates discovered through the alliance.

For therapeutic candidates that Pharmacopeia does not elect to co-develop and co-commercialize, Organon will retain exclusive development and commercialization rights and the former will receive milestone payments as a result of Organon's successful advancement, if any, of each candidate through clinical development, and up to double-digit royalties based on commercialization of any resulting pharmaceutical products.