Lycera signs research agreement with Merck

Under the pact, both the companies are expected to develop drugs for the treatment of autoimmune diseases like psoriasis, rheumatoid arthritis, multiple sclerosis and inflammatory bowel disease.

Further, Lycera will collaborate with Merck, through an affiliate, on discovery efforts and preclinical development of candidates targeting the retinoic acid related orphan receptor (ROR?t).

The tie up allows Merck to take care of the clinical development and also provided the rights of marketing and commercialization to any resulting products, subject to a profit share option in the US retained by Lycera to all products resulting from the collaboration.

As per the agreement, Merck is responsible to pay a sum of $12m as upfront cash payment, committed research funding, and will also give up to $295m to Lycera in research, development and regulatory milestone payments if multiple major indications are approved.

Lycera is entitled to up to low double digit tiered royalty payments and sales milestones on global sales from any products that are developed as a result of the collaboration.

Lycera founder and chief scientific officer Gary Glick said this joint partnership is a significant validation of Lycera’s discovery capabilities and our Th17 program, and enables them to expand the scope of the research in this promising area to expedite our discovery efforts as well as our timeline to enter the clinic.