Jerini AG and Merck KGaA announced a collaboration agreement to jointly develop small molecule inhibitors against an undisclosed target for oncology.
Prior to the agreement, Jerini identified novel proprietary small molecule lead series by applying its Peptides-to-Drugs (P2D) approach. Jerini and Merck are joining forces to further develop Jerini's compounds. Initiation of pre-clinical development is planned for 2005.
Under terms of the agreement, Jerini will receive an upfront payment, personnel funding, milestone payments, and royalties. Merck obtains worldwide rights for all indications in cancer, cardiovascular diseases, diabetes and thyroid disorders. Jerini could receive in excess of EUR 50 million if the product is approved. Further financial details were not disclosed.
"We are extremely pleased to enter into this agreement with Merck, which is a major milestone for Jerini," said Jens Schneider-Mergener, PhD, CEO, Jerini AG. "It validates our novel Peptides-to-Drugs approach and demonstrates that it can create valuable collaboration opportunities with attractive partners."
"In line with our goal to become a major player in oncology, we have identified Jerini as an attractive partner whose expertise and approaches nicely complement our in-house activities," said Dr Inge Lues, vice president, Global Preclinical R&D, Merck KGaA.
The market for new cancer therapeutics is large and growing. Current annual global spending on cancer therapeutics, estimated to be USD 25 billion, is expected to grow about 3.5 per cent a year over the next several years.