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

Meaningful use not linked to quality: study

Meaningful use not linked to quality: study

A recent study of physicians found no correlation between following EHR meaningful use requirements and providing consistently higher quality of care.

Lilly Q1 sales dip

Lilly Q1 sales dip

US sales fell 34% during the quarter, largely due to lower demand and lower prices for off-patent Cymbalta and Evista.

Gilead reaps huge HCV sales, payer fury

Gilead reaps huge HCV sales, payer fury

Sovaldi's debut has been marked by plenty of criticism from payers and lawmakers, but the hep. C drug's launch, now confirmed to be the fastest of all time, has also ...