Under the terms of the alliance agreement, Pharmacopeia will receive an up-front payment of $15 million and additional payments in research funding over the five-year term of the research portion of the alliance.
The goal is to produce compounds ready to enter development which will be primarily handled by Organon. The agreement provides Pharmacopeia the option to co-develop and co-commercialize therapeutic candidates discovered through the alliance.
For therapeutic candidates that Pharmacopeia does not elect to develop, Organon will retain exclusive rights. Pharmacopeia will receive milestone payments and up to double-digit royalties from the agreement.
“Our new alliance with Pharmacopeia provides Organon with access to industry-leading small molecule discovery capability, and with Pharmacopeia's evolution into a therapeutic products business, enables Organon to continue to build its clinical pipeline with a valued, long-term partner,” said David Nicholson, executive vice president R&D of Organon.