Under the terms of the agreement, which is valid until the end of 2008, ChemGenex will receive a total retainer fee of approximately A$1 million, with potential additional payments depending on the amount and type of preclinical support provided.
The new agreement follows the successful completion of three research contracts in target discovery, and reflects a strong ongoing relationship between Merck KGaA and ChemGenex.
“This new agreement is a strong endorsement by Merck of the value they see in ChemGenex’s diabetes expertise, and of our strong competitive position in this field,” said Dr Greg Collier, CEO of ChemGenex.
ChemGenex develops therapeutics in the areas of oncology, diabetes, obesity, and depression.