Company will initially put down $22 million in this two-product collaboration.
Merck & Co. is paying $22 million upfront for Addex Pharmaceuticals’ preclinical compound to treat schizophrenia and other indications. Addex could receive an additional $670 million in milestone fees plus royalties.
ADX63365 is a positive allosteric modulator (PAM) that targets the metabotropic glutamate receptor 5 (mGluR5). The deal also includes mGluR5 PAM backup compounds discovered by Addex.
Merck could pay up to $455 million in research, development, regulatory, and sales milestones for the first product developed for two indications. The company will put forth up to another $225 million in development, regulatory, and sales milestones for a second product developed in two indications. Addex is also eligible to receive royalties on sales of any products resulting from this collaboration.
Addex retains the option to copromote in certain EU countries. It will participate in the joint oversight committee for further development that will be led by Merck.