Merck & Co. deepens cancer tie-up with Otsuka's Astex unit

Merck & Co. entered into a new agreement with Otsuka's Astex Pharmaceuticals unit to identify small-molecule candidates with activity towards the p53 tumour suppressor protein for the treatment of cancer, the latter company reported Tuesday. The deal builds on a previous collaboration between the drugmakers, along with Otsuka's Taiho Pharmaceutical subsidiary, to develop small-molecule inhibitors against several cancer drug targets, including the KRAS oncogene.

"Astex is applying its fragment-based drug discovery capability to design and generate small-molecule modulators tailored to a wide range of potentially important therapeutic targets," remarked Harren Jhoti, CEO of Astex.

Under the new agreement, Astex will provide Merck with lead compounds for further optimisation and preclinical development. Meanwhile, Merck has an exclusive global license to research, develop and commercialise candidates arising from the collaboration, with the company funding all work. Astex will receive an upfront payment of $35 million and is eligible for milestone payments totalling approximately $500 million per programme, as well as tiered sales royalties on sales.