The Chennai-based global pharma major, Orchid Chemicals & Pharmaceuticals (Orchid) stated that it has successfully completed a milestone in its anti-infectives research collaboration with a subsidiary of Merck & Co., Inc (Merck is known as MSD outside the United States and Canada). Consequent to recent progress, Orchid has received the initial US$ 1.5 million milestone payment from Merck.

Under the terms of the agreement, Orchid is eligible to receive payments totalling more than US$ 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.

In September 2008, the two companies announced a collaborative research agreement focused 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.