TransTech Pharma Inc and Merck & Co Inc announced a research collaboration using TransTech's proprietary TTP Translational Technology to discover and develop novel small molecules for a therapeutic target of interest to Merck.

Under the terms of the agreement, Merck has the exclusive right to develop and commercialize all compounds directed at the target covered by the collaboration. TransTech could receive payments of more than $26 million for the discovery, development and marketing approval of a small molecule for the top priority indication. The agreement also provides for milestone payments for the discovery and development of additional small molecules and lower priority indications. TransTech would receive an upfront payment, research support and payments upon the achievement of specified research, clinical and commercialization milestones. In addition, TransTech would receive royalties on future product sales, a release from Merck said.

"We were very impressed with TransTech's platform technology and its ability to rapidly generate high-quality lead candidates for difficult biological targets," said Merv Turner, senior vice president, Worldwide Licensing and External Research at Merck Research Laboratories. He added, "Some of the leads in TransTech's internal programs have progressed to human clinical trials, validating their technology. We look forward to real progress in the discovery and development of novel therapeutics for our targets."

Adnan Mjalli, founder, president and chief executive officer of TransTech said, "We are very excited to enter into this collaboration with Merck, a premier international pharmaceutical company with a proven track record of successful partnerships. The combination of Merck's discovery and development capabilities with TransTech's Translational Technology(r) has the potential to result in the expedited discovery of patentable clinical drug candidates."

TransTech's Translational Technology is a highly automated and fully integrated drug discovery process including proprietary software modules. The technology has already shown promise against a wide range of biological targets including protein-protein interactions, receptor modulators and enzyme inhibitors, and delivered small-molecule-based pre-clinical and clinical drug candidates for the treatment of diabetes, cancer, inflammation, Alzheimer's disease and thrombosis, the release added.