The two companies have agreed to develop small molecule anti-cancer drugs and Chi-Med can draw from its portfolio of over 10,000 natural substances to help manufacture the products. Chi-Med uses modern methods to scan natural products for their potential for drug development.
“It will allow us to extend our interaction with the emerging Chinese pharmaceutical industry,” said Ulrich Betz, Merck KGaA’s head of strategic innovation and research.
Dr Samantha Du, chief scientific officer and executive vice president of Chi-Med, said: “The goal of this collaboration is to leverage the expertise of both Merck and Chi-Med in oncology research. This collaboration will allow us to address important unmet medical needs by accessing natural products, a rich source of diversified chemical components with drug-like properties.”
Chi-Med already has two drugs in clinical studies in the US. One is an oncology product as an addition to radiotherapy and the other is used for respiratory infections, Crohn’s disease and ulcerative colitis. Chi-Med believes that traditional Chinese medicine is a major, under-exploited reservoir for the development of novel drugs for the global pharmaceutical market.
The Chinese company is owned by technology firm Hutchison Whampoa, which has interests in ports, property and hotels, retail, energy, infrastructure, investments and telecommunications.
Financial terms of the agreement were not disclosed.