Merck and Ariad in billion-dollar cancer drug pact

Share this article:

Merck and Ariad Pharmaceuticals have agreed to the terms of a potential billion-dollar global collaboration deal to develop and market Ariad’s cancer treatment known as AP23573.
 
Merck will initially pay Cambridge, MA-based drug developer Ariad $75 million, up to $452 million in milestone payments and up to $200 million in sales bonuses, Merck said today in a statement. It is estimated that Merck will also spend at least $200 million on development costs for the drug and an additional $200 million to cover portions of Ariad's global development costs.

Ariad’s AP23573 is part of a new class of cancer treatments known as mTOR inhibitors, which are designed to block mTOR proteins and interfere with cancer cell growth.

AP23573 has been designated both as a fast-track product and an orphan drug by the FDA and as an orphan drug by the European Medicines Agency for the treatment of soft-tissue and bone sarcomas.

In June 2006, Ariad unveiled promising results from a Phase II study showing that AP23573 was effective in treating sarcoma patients.

A Phase III trial for AP23573 is set to begin this quarter. 

Share this article:

Email Newsletters

More in News

House bill would speed approval once EU OKs same product

House bill would speed approval once EU OKs ...

The Speeding Access to Already Approved Pharmaceuticals Act of 2014 would require FDA to expedite the review of pharmaceuticals that are already approved by the European Union

Rep access continues to shrink

Rep access continues to shrink

Sales reps are experiencing even more limited physician access, according to a report by Chicago consultancy ZS Associates.

Allergan touts reorg, plans to lay off 13% of workforce

Allergan touts reorg, plans to lay off 13% ...

Allergan's second-quarter earnings, and a new round of cuts, are now part of the Botox maker's record as it seeks to remain independent.