Merck & Co, Quartet sign deal to co-develop tetrahydrobiopterin pathway modulators

US pharma giant Merck & Co (NYSE: MRK) has signed a $20 million built-to-buy deal with Quartet Medicine.

Under the terms of the deal Quartet will get the amount split across an upfront payment and various future milestone payments. The plan is to use the money to push its lead program through Phase IIa clinical proof-of-concept for its pipeline of novel small molecule drugs that modulate the tetrahydrobiopterin (BH4) pathway. The “built-to-buy” component comes into play when, at that point, if it chooses to exercise its option, Merck can buy the company.

Kevin Pojasek, Quartet’s chief executive, said: “Merck is an ideal partner to help advance development of Quartet’s potential first-in-class therapy for chronic pain. This agreement provides a mutually beneficial collaboration framework, while providing Quartet significant non-dilutive research and development funding to advance our program through human proof-of-concept.”