| MRK-AZN Joint Venture: MRK receives 32% royalty (supply) payment from AstraZeneca on US Prilosec sales, and 27% on Nexium sales. MRK also recognizes a lesser economic benefit from Nexium in its “Equity Income from Associates” line. According to the Zacks Digest report, revenue from AstraZeneca LP recorded by Merck was $420 million in 4Q09, up 11.4% y/y and was $1,458.0 million in FY09, down 9.4% y/y.
On February 17, 2010, Roche announced that it is collaborating with Merck to develop a potential cancer test that could be used to more accurately target therapies. Financial details of the partnership were not disclosed. Roche will provide a Merck unit access to the developing microarray-based AmpliChip p53 Test, which is designed to detect mutations in the tumor suppressor gene p53. The goal is to better identify cancers that affect the gene, allowing companies to better target developing therapies.
On March 1, 2010, Merck announced that it will receive a $647 million payment next month as AstraZeneca PLC (AZN) exercises an option to buy Merck's interest in some AstraZeneca products. AstraZeneca will obtain Merck's interest in non-proton pump inhibitor products Atacand, Lexxel and Plendil, which treat hypertension; and Entocort, a Crohn's disease treatment, plus some products in development. AstraZeneca also will have the option to acquire Merck's interest in proton pump inhibitor products like the heartburn treatment Nexium in 2012 or later under certain circumstances.
On December 23, 2009, Arena Pharma announced that Merck ended its collaboration with Arena, following the failure of an atherosclerosis drug. Merck made the decision after seeing the results of a recent mid-stage study of a drug called MRK-1903. The drug was being tested as a treatment for atherosclerosis, a condition that causes the walls of the arteries to thicken. It did not significantly raise patients' levels of good cholesterol compared with a placebo.
On December 17, 2009, Merck and Avecia Investments Limited announced that they entered into a definitive agreement by which Merck will acquire the biologics business of the Avecia group through a Merck affiliate (Merck Sharp & Dohme (Holdings) Limited or "MSD"). Avecia Biologics is a contract manufacturing organization with specific expertise in microbial-derived biologics. Financial details of the transaction were not disclosed.
Merck entered into an agreement with Australia-based flu vaccine maker CSL Limited in September 2009 to market and distribute Afluria, CSL's seasonal flu vaccine, in the US for the 2010 through 2016 flu seasons. The vaccine was approved by the FDA in September 2007 for people aged 18 years or older. CSL and Merck have been partners in vaccine development and marketing since 1980.
MRK and Portola Pharmaceuticals, Inc. signed an exclusive global collaboration and license agreement in July 2009 for the development and commercialization of Betrixaban, an investigational oral Factor Xa inhibitor anticoagulant currently in Phase II of clinical development for the prevention of stroke in patients with atrial fibrillation (SPAF). Enrollment in the trial is expected to be completed in 4Q09.
As per the terms of the deal, Merck will pay Portola $50 million initially to license the drug. Additional cash payments of up to $420 million are payable to Portola upon achievement of certain milestones. Merck will assume all development and commercialization costs, including the costs of Phase III clinical trials. Portola has retained an option to co-fund Phase III clinical trials in return for additional royalties and to co-promote Betrixaban with Merck in the US.
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