Avalon partners Merck in $200 million deal

Avalon will use its AvalonRx platform to screen a select set of compounds from Merck's proprietary compound library and identify hits against this target. It has not been possible to identify a drug that could inhibit this disease target with other technologies.

Avalon will select compound families and optimize these compounds to a preclinical candidate selection stage. Merck will be responsible for the clinical development, regulatory approval and commercialization of any potential product candidates.

Under the terms of the agreement Avalon may receive discovery, development, regulatory and commercial milestones payments exceeding $200 million as well as royalties on any potential future marketed products.

“The combination of Merck's considerable drug discovery and development capabilities and Avalon's unique approach for targeting otherwise intractable cancer pathways should result in the identification of first-in-class drug candidates,” said Kenneth Carter, president and CEO of Avalon Pharmaceuticals.