Merck & Co returns vernakalant rights to Cardiome

Canada-based Cardiome Pharma (Nasdaq: CRME) saw its shares go into free-fall, dropping 54.4% to close at $0.88, after the company revealed that its partner, drug giant Merck & Co (NYSE: MRK), will return the global marketing and development rights for both the intravenous (IV) and oral formulations for vernakalant, a treatment for chronic atrial fibrillation, to Cardiome.

Vernakalant IV is marketed, in certain countries, under the brand name Brinavess  and was approved in the European Union on September 1, 2010 for the rapid conversion of recent onset atrial fibrillation (AF) to sinus rhythm in adults: for non-surgery patients with AF of seven days or less and for post-cardiac surgery patients with AF of three days or less. Vernakalant IV is not approved for use in the USA or Canada.

Merck acquired rights to the drug - excluding North America and Mexico - from Cardiome for as much as $600 million in 2009, and subsequently also for these remaining territories from licensee Astellas last year (The Pharma Letter July 26, 2011). Terms of the latter deal were not revealed. Earlier this year Merck said it was stopping further development of oral vernakalant (TPL March 29).