A Burnaby-based life sciences firm has signed a major research collaboration agreement with Merck potentially worth US$289 million.
The agreement between Simon Fraser University spin-off Alectos Therapeutics and the global pharmaceutical giant provides Merck with a worldwide exclusive license to research, develop and commercialize compounds that modulate an enzyme believed to be involved in the development of Alzheimer’s disease and other disorders.
Ernest McEachern, CEO of Alectos, said, “This is an important validation of our scientific leadership in this area.”
Merck paid Alectos an undisclosed upfront payment and will fund research to include studying Alectos’ existing portfolio of compounds targeting Alzheimers. Alectos is eligible to receive up to US$289 million, including the upfront fee, and payments for research, development and regulatory milestones as well as tiered royalty payments on sales of any products resulting from the collaboration.
While Alectos and Merck will work together on the discovery efforts and preclinical development, Merck will be responsible for clinical development and will have worldwide marketing and commercialization rights to any resulting products.