Xenogen Corporation announced a five-year global licensing deal with Merck & Co Inc, a significant extension of an existing relationship between the two companies.

Under the expanded licensing agreement, Merck will purchase five of Xenogen's biophotonic imaging systems (IVIS Imaging System 200 Series) and the accompanying software (Living Image Software) for use in oncology research and development at its global research sites in the United States, Canada, Japan and Italy. In addition to purchasing the IVIS imaging systems, Merck will pay an annual license fee for use of Xenogen's patented software and methods for in vivo imaging. Merck has previously worked with Xenogen Corporation in biophotonic imaging and with Xenogen's wholly owned subsidiary, Xenogen Biosciences, on transgenic animal models, release from Xenogen said.

Xenogen's technologies enable researchers to visualize and track biological processes in living animals, non-invasively and in real time, including analysis of gene function, the spread of disease and the effects of a drug candidate throughout the system. The result is more accurate, predictable data that can improve the success rate of pre-clinical drug development, the company claims in the release.

"We are extremely pleased that Merck has extended its investment in and use of our technology at its worldwide research and development sites," Pamela R Contag, president of Xenogen Corporation said adding, "As one of the most respected pharmaceutical companies in the world, Merck's use of Xenogen's proprietary biophotonic technology is an indication of the value it places on this technology and on the ongoing relationship with Xenogen."

Xenogen Biosciences, a wholly owned subsidiary of Xenogen, with its experience in the transgenic field, provides reliable genetically modified mouse models in short timelines. The company has completed more than 2,000 transgenic and 600 gene targeting experiments, with a greater than 95 per cent success rate in delivering transgenic founder or gene knockout lines to customers, the release added.