Vertex expects to recognize revenue of approximately $7 million of the $19.5 million in milestone payments in the fourth quarter of 2005, and the balance in 2006.
In the phase I clinical study in patients with solid tumor cancers, dosing with VX-680 (MK-0457) demonstrated activity on a clinically relevant biomarker triggering the milestones under the contract.
VX-680 is a small molecule inhibitor of Aurora kinases and the lead development compound in the collaboration. In June 2004, Vertex entered into a global collaboration with Merck to develop and commercialize the compound.
Along with clinical development, Vertex and Merck are conducting a joint research program to characterize VX-680’s activity across a broad range of cancer types and have identified an additional drug candidate targeting the Aurora kinases.
“We are pleased with our progress in the R&D of Aurora kinase inhibitors, which may represent an exciting new approach to the treatment of cancer,” said Dr Stephen Friend, executive vice president, Advanced Technology & Oncology at Merck Research Laboratories.
Merck is presently conducting three clinical studies of VX-680 in patients with hematological cancers, recurrent or non-responsive solid tumors, or cancers for which standard therapy does not currently exist. In these studies, the safety and tolerability of VX-680 are being evaluated when administered as either a 24-hour continuous infusion or as a 5-day continuous infusion.