Metabasis, Merck To Advance AMPK Activator For Late Preclinical Development

Published: 10-Jun-2009

Metabasis to receive one time payment of $6 million

Metabasis and its partner Merck have announced that AMP protein kinase (AMPK) activators, has yielded a lead candidate that Merck has selected to advance into late preclinical development.

Under the amended agreement, Merck has agreed to pay $6 million as one time payment to Metabasis, which satisfies all future obligations for milestones and royalty payments.

Metabasis and Merck entered into a collaboration and license agreement in June 2005. The collaboration is focused on the discovery, development and commercialization of AMPK activators for the treatment of various metabolic diseases.

As per the original agreement, Metabasis received funding for a three year research term, which was extended by another year, through June 2009. Also, Metabasis received an upfront payment of $5 million funding for its research contribution to the program. Also, the company was eligible to receive payments upon achievement of certain milestones associated with the development of a product candidate, as well as a royalty on net sales should a product be commercialized.

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