Neuromed strikes major R&D deal with Merck

Neuromed Pharmaceuticals Ltd has signed an R&D collaboration and licencing agreement with Merck & Co Inc worth up to US$475 million if the Vancouver-based firm is successful in developing a new generation of pain killers and reaches milestones for four indications of its NMED-160 compound for pain treatment. The deal closely follows Neuromed's completion of $25 million in venture capital financing. (R$, March 16/06). The Merck agreement involves an initial $25-million cash payment to Neuromed to further develop of NMED-160, which is in Phase II trials, along with R&D funding over two years as part of a collaborative research program. An additional $202 million will be paid if NMED-160 is successfully developed and launched for an initial single indication. Milestones will increase to $450 million if a second indication is developed and approved, and a further compound is developed and approved. NMED-160 is the first compound derived from Neuromed's N-type calcium channel small molecule blockers....