Lundbeck and Merck & Co enter alliance  

The two pharmaceutical companies have agreed to collaborate on development and commercialisation of the Lundbeck compound gaboxadol in the US

Pharmaceutical companies Lundbeck and Merck & Co have entered an agreement to develop and commercialise Lundbeck's sleep disorder drug gaboxadol in the US. The drug is currently in phase III clinical trials and the two companies will jointly complete the ongoing programme with Merck funding the majority of the development activities.


Lundbeck will receive an initial payment of DKK 411 million (USD 70 million) and up to DKK 1.2 billion (USD 200 million) in additional milestone payments. Merck is expected to seek permission to sell gaboxadol in the US some time between end-2006 and mid-2007. Following an approval from the FDA, Lundbeck will receive a share of gaboxadol sales in the US.


According to the US National Institute of Health (NIH) at least 40 million Americans suffer from chronic sleep disorders each year, while 20 million more have intermittent sleep problems. Sleep disorders cost DKK 94 billion (USD 16 billion) each year, with additional costs associated with lost working time. Gaboxadol is considered to have a minimal risk of abuse which could give it a competitive advantage over certain commonly prescribed drugs. The news is reported by BiotechDenmark online and on Lundbeck's website.


Link > Lundbeck

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