Orchid Chemicals and Pharmaceuticals has completed a milestone in its anti-infectives research collaboration with a subsidiary of Merck & Co., Inc and received the initial US$ 1.5 million payment from Merck.

Under the terms of the agreement, Orchid is eligible to receive payments totaling more than $100 million associated with the achievement of various research and development milestones involving multiple candidates. Orchid is also eligible to receive significant royalties on worldwide net sales of any products commercialized under the agreement.

Orchid and Merck entered collaborative research agreement during September 2008 to focus on the discovery, development and commercialization of novel agents for the treatment of bacterial and fungal infections for which Orchid received an upfront payment. Orchid's drug discovery efforts are conducted through its wholly-owned subsidiary, Orchid Research Laboratories.