Drug Discovery and Development

  • Home Drug Discovery and Development
  • Drug Discovery
  • Women in Pharma and Biotech
  • Oncology
  • Neurological Disease
  • Infectious Disease
  • Resources
    • Video features
    • Podcast
    • Voices
    • Webinars
  • Pharma 50
    • 2025 Pharma 50
    • 2024 Pharma 50
    • 2023 Pharma 50
    • 2022 Pharma 50
    • 2021 Pharma 50
  • Advertise
  • SUBSCRIBE

Merck and Ariad Restructure Ridaforolimus Deal

By Drug Discovery Trends Editor | May 6, 2010

NEW YORK (AP) – Merck and Ariad Pharmaceuticals are restructuring how they develop a potential cancer drug, with Merck saying it will cover all development costs in exchange for worldwide rights to the drug candidate.

The companies teamed up in 2007 to develop ridaforolimus as a cancer treatment. Late-stage trial results are due this year, and Merck may file for Food and Drug Administration approval later this year.

Under the previous agreement, Ariad could have received more than $1 billion in milestone payments and reimbursements for research spending, as well as royalties on sales. Under the new deal, Ariad won’t have to cover any development costs and could get up to $514 million in milestone payments, along with royalties.

Merck has spent more than $200 million on the partnership so far, including about $128.5 million in milestone payments. Last year, the companies canceled one late-stage trial and delayed another. That cost Ariad millions in milestone payments.

Merck is now fully in charge of the drug’s development and marketing. Instead of sharing profits on U.S. sales with Ariad, Merck will receive royalties on all worldwide sales. All research will be transferred to Merck, based in Whitehouse Station, N.J., over the next six months.

Merck said it will pay Ariad $50 million upfront and refund about $19 million in development costs that Ariad has paid since Jan. 1. Ariad said the new agreement strengthens its financial position, as it will not have to pay costs of testing the drug or cover expenses related to regulatory review.

Ariad will get royalty payments of more than 10 percent on international sales – more than what it would have received on overseas sales under the original partnership. The Cambridge, Mass., company also said it will have the option to help promote the drug in the U.S. if it is approved, and Merck would compensate it for those expenses.

Date: May 5, 2010
Source: Associated Press


Filed Under: Drug Discovery

 

Related Articles Read More >

Sanders, King target DTC pharma ads but the industry worries more about threats to its $2B R&D model
Zoliflodacin wins FDA nod for treatment of gonorrhea
FDA approved ENFLONSIA for the prevention of RSV in Infants
First clinical study results of Dupixent for atopic dermatitis in patients with darker skin tones 
“ddd
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest news and trends happening now in the drug discovery and development industry.

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Drug Discovery and Development
  • MassDevice
  • DeviceTalks
  • Medtech100 Index
  • Medical Design Sourcing
  • Medical Design & Outsourcing
  • Medical Tubing + Extrusion
  • Subscribe to our E-Newsletter
  • Contact Us
  • About Us
  • R&D World
  • Drug Delivery Business News
  • Pharmaceutical Processing World

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Drug Discovery & Development

  • Home Drug Discovery and Development
  • Drug Discovery
  • Women in Pharma and Biotech
  • Oncology
  • Neurological Disease
  • Infectious Disease
  • Resources
    • Video features
    • Podcast
    • Voices
    • Webinars
  • Pharma 50
    • 2025 Pharma 50
    • 2024 Pharma 50
    • 2023 Pharma 50
    • 2022 Pharma 50
    • 2021 Pharma 50
  • Advertise
  • SUBSCRIBE