Advinus expects to gain $74.5 million for each product and has also received an undisclosed up front payment. Additionally, Advinus will receive royalty payments on sales of the drugs.
Research has already been conducted on one of the products whereas the other drug is a potential new treatment. The collaboration will also look into developing other compounds for diseases such as diabetes, obesity and hypertension.
The move is part of a recent trend that has seen pharmaceutical companies progressively using Indian firms to develop their products due to the low manufacturing costs. This is Merck’s first collaboration with an Indian-based firm.
Advinus is focused on developing therapies for indications in metabolic disorders, inflammatory diseases, and neglected diseases of the developing world.