Our collaboration with Merck
In July 2007, ARIAD and Merck & Co., Inc.—one of the leading global pharmaceutical companies dedicated to developing and commercializing new oncology drugs—announced a landmark global collaboration to jointly develop and commercialize ridaforolimus (formerly known as deforolimus) for use in cancer.
Over the first three full years of the partnership (2008-2010), we will pursue at least four cancer indications in addition to sarcomas: endometrial, prostate, breast and non-small-cell lung cancers. We are studying ridaforolimus both as a single agent and in combination with various targeted agents driven by mechanisms of action and biology. During 2008, ARIAD and Merck initiated Phase 2 clinical studies evaluating ridaforolimus in patients with breast, endometrial and prostate cancer. In March 2009, ARIAD and Merck announced a fourth Phase 2 clinical trial of ridaforolimus in patients with non-small cell lung cancer. We are also studying ridaforolimus in combination with Merck’s IGF-1R inhibitor in patients with solid tumors, in a pediatric population of patients with solid tumors and in Japanese cancer patients to potentially provide access to the Japanese market.
Both ARIAD and Merck share overall responsibility for global development and commercialization of ridaforolimus. In the United States, ARIAD will distribute and sell ridaforolimus for all cancer indications and book all sales, and ARIAD and Merck will co-promote ridaforolimus. ARIAD and Merck will each receive 50 percent of the income from such sales. Outside the United States, Merck will distribute, sell and promote d ridaforolimus and book all sales. Merck will pay ARIAD tiered double-digit royalties on such end-market sales of ridaforolimus.
In the United States, ARIAD will have primary responsibility for development of ridaforolimus in the metastatic sarcoma indication. Merck and ARIAD will have joint responsibility in the United States for development of all other cancer indications being pursued. Outside the United States, Merck will have primary responsibility for development in all cancer indications being pursued.
The collaboration provides ARIAD with up-front and milestone payments, sharing of development costs and other provisions that may be valued at approximately $1 billion based on successful development of ridaforolimus in multiple cancer indications and achievement of significant sales milestones, excluding potential commercial returns from profit-sharing in the U.S. or royalties paid by Merck for sales of ridaforolimus outside the United States.