Addex, Merck to Develop Schizophrenia Drug

Addex Pharmaceuticals has entered an exclusive worldwide license agreement with Merck to develop ADX63365, an oral drug candidate for the potential treatment of schizophrenia and other undisclosed indications. ADX63365, currently in preclinical development, is a positive allosteric modulator (PAM)—a new class of therapeutic agents—that targets the metabotropic glutamate receptor 5 (mGluR5), which is believed to be an important target for the treatment of schizophrenia and other conditions. The agreement also includes mGluR5 PAM backup compounds discovered by Addex.

Under the terms of the agreement, Addex will receive $22 million upfront and is eligible to receive as much as $455 million in research, development, regulatory and sales milestones for the first product developed for two indications, and as much as $225 million in additional milestones for a second product developed in two indications. Addex is also eligible to receive royalties on sales and has an option to co-promote in certain EU countries.

“We are thrilled to establish a second deal with Merck to develop this groundbreaking new approach for patients suffering from schizophrenia and other important diseases,” said Vincent Mutel, chief executive officer of Addex. “This deal confirms that Addex can successfully leverage its technology to produce drug candidates that can have broad benefit for human health.”

“Merck scientists were the first to identify the potential for targeting mGluR5 to treat schizophrenia,” said Darryle D. Schoepp, Ph.D., senior vice president and franchise head, Neuroscience, at Merck Research Laboratories. “Through this second collaboration with Addex we have now gained access to a promising drug candidate targeting this receptor that potentially allows us to address an area of high medical importance where current therapies are clearly inadequate.”