Swiss biotech Addex set to get over $700M for licensing drug to Merck & Co

In a second deal within a month between the two companies, US drug major Merck & Co has entered an agreement to license Swiss biotechnology firm Addex Pharmaceuticals' ADX63365, an orally-available drug candidate for the potential treatment of schizophrenia. Addex' stock rose 6.5% to 42 Swiss francs on the news.

Under the terms of the accord, Addex will receive $22.0 million upfront and is eligible for up to $455.0 million in research, development, regulatory and sales milestones for the first product developed for two indications and up to $225.0 million in additional development, regulatory and sales milestones for a second agent discovered in two indications, making a total of up to $702.0 million.

The Geneva-based firm is eligible to receive royalties on sales of any products resulting from this collaboration. In addition, Addex has an option to co-promote in certain European Union countries and will participate in the joint oversight committee for further development that will be led by Merck.