DOV Pharmaceutical Inc announced that, effective from September 10, 2004, it closed the licensing agreement with an affiliate of Merck & Co Inc previously announced by both parties on August 5, 2004. The closing followed termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act.

Under the licensing agreement, Merck has licensed exclusive worldwide rights to DOV 21,947, which is in phase I development, for all therapeutic indications. Merck has also licensed exclusive worldwide rights to DOV 216,303 for the treatment of depression, anxiety and addiction. DOV retains rights to DOV 216,303 for other indications.

According to a release, in connection with the closing and as previously announced, DOV will receive a $35 million up-front licensing payment. In addition, DOV could receive as much as $300 million for achieving certain clinical development and regulatory milestones for multiple territories and approval of two indications, and up to $120 million upon achievement of certain sales thresholds.

Merck will assume responsibility for the full development, manufacturing and commercialization of DOV 21,947 and pay DOV royalties that increase based upon certain sales thresholds. DOV has an option to co-promote in the US to psychiatrists and other specialists who treat depression, the release added.