The Pharma Letter (02/06/12)
Merck KGaA's division Merck Serono has signed an agreement with Threshold Pharmaceuticals to co-develop and commercialize a small molecule hypoxia-targeted drug, TH-302, which is being examined in as a possible therapy for those suffering from pancreatic cancer. The drug is currently in several stages of testing for various uses, including a global Phase III clinical trial for those with soft tissue sarcoma, and a Phase II for those with advanced pancreatic cancer. Threshold will receive a initial payment of $25 million dollars, and could receive as much as $525 million in milestone payments. Threshold will have primarily responsibility for development of the drug in the soft tissue sarcoma indication and will work jointly with Merck to develop it in all other indications that will be pursued. Merck will be covering 70 percent of the development costs worldwide and will be initially responsible for commercialization while Threshold will earn tiered, double-digit royalty on sales and will retain the option to-promote the drug within the US, which will allow participation in as much as 50 percent of the profits in the US. Merck will be solely responsible for commercialization in all areas outside of the US and Threshold will only receive the royalty on sales.

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