The parties are collaborating on the development of products via a joint committee. Research and development funding will initially be the responsibility of Actelion.
The two companies will jointly fund Phase II development, with Merck responsible for funding all Phase III and outcome studies. Merck will lead and fund commercialization. Actelion retains a worldwide option to co-promote any product resulting from this alliance as a paid-for sales force.
Actelion is eligible to receive significant research, development and approval milestone payments of up to $262 million for the successful commercialization of the first collaboration product. Actelion will also be eligible to receive certain milestone payments for the successful commercialization of additional products and Merck will pay Actelion substantial royalties on the sale of all products resulting from this renin inhibitor alliance.
Actelion and Merck formed an exclusive worldwide alliance in December 2003 to discover, develop and market new classes of orally available renin inhibitors for patients suffering from cardio-renal diseases.