| Merck & Co., Inc. and Amrad Corporation Limited (ASX:AML) today announced an exclusive licensing and multi-year research collaboration agreement between Merck Sharp & Dohme (Australia) Pty. Limited, the Australian subsidiary of Merck, and Amrad. Based on the results of the collaboration, Merck will seek to develop drugs with therapeutic potential in areas such as asthma, other types of respiratory disease, and oncology.
Under the agreement with Merck, Amrad will receive an upfront payment of $5 million. Total potential payments to Amrad by Merck based on the successful development of a human health product for all indications would amount to a total of $112 million. Amrad would also receive royalties for commercialized products. Amrad and Merck will work together to investigate drug candidates, with Merck being solely responsible for all clinical development and marketing.
Dr. Peter S. Kim, president of Merck Research Laboratories, cites this agreement as a significant entry by Merck into the biologics arena and consistent with Merck's continuing emphasis on external partnerships to supplement its world-class research capabilities.
"We are delighted to broaden our longstanding relationship with Amrad. This agreement will help to accelerate our development efforts in the biologics arena where we already have substantial technical and scientific capabilities," Dr. Kim said.
Amrad Managing Director, Dr Sandra Webb, said this deal demonstrates the value of Amrad's drug discovery program and intellectual property. It confirms the excellence of the basic research conducted at the Cooperative Research Center for Cellular Growth Factors (CRC-CGF) and Melbourne's Walter and Eliza Hall Institute, and Amrad's ability to extend and commercialize that research.
"We are delighted to enter this collaboration with Merck as its strong skills in development and marketing make Merck an ideal partner. More importantly, we believe that by collaborating with Merck we can accelerate the pre-clinical investigation and clinical development of drugs based on this exciting target," Dr. Webb said.
About Amrad
Amrad Corporation Limited is an Australian drug discovery and development based biotechnology company. Amrad's in-house R&D expertise is focused on five flagship status projects in the areas of allergy and inflammation, anti-infectives and neurological indications. Further information about projects in drug discovery and development can be found at www.amrad.com.au.
Forward-Looking Statement
This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect our businesses, particularly those mentioned in the cautionary statements in Item 1 of our Form 10-K for the year ended Dec. 31, 2002, and in our periodic reports on Form 10-Q and Form 8-K (if any) which we incorporate by reference.
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