Merck, Ariad Amend Cancer Drug Pact

Merck has restructured its co-development and commercialization agreement with Ariad Pharmaceuticals, Inc., obtaining an exclusive license to ridaforolimus, an investigational, oral mTOR inhibitor in development for the treatment of multiple types of cancer.

Merck now has acquired full control of the development and worldwide commercialization of ridaforolimus. Ariad will receive a $50 million upfront fee and is eligible to receive milestone payments associated with regulatory filings and approvals of ridaforolimus in multiple cancer indications. Ariad will now receive royalties on global sales of ridaforolimus and Merck will assume responsibility for all activities relating to the development, manufacturing and commercialization of ridaforolimus. Also, Merck will file the marketing applications for any oncology indications and will lead all interactions with regulatory agencies.

“This amended agreement positions Merck and Ariad to maximize the therapeutic potential of ridaforolimus by evaluating its properties in multiple cancer types and furthers Merck’s commitment to oncology research and advancing the health of people suffering from cancer,” said Muna Bhanji, senior vice president and general manager, Oncology franchise at Merck.