Merck & Co snaps up Alectos Therapeutics' Alzheimer's compounds in deal worth $289 million

Privately-held Canadian biopharmaceutical firm Alectos Therapeutics says it has entered into a research collaboration with US drug giant Merck & Co to identify and develop compounds that modulate O-linked N-acetylglucosaminidase (O-GlcNAcase) an enzyme that is believed to be involved in the development of Alzheimer's disease and potentially other disorders.

Under the terms of the deal, which provides Merck with a worldwide, exclusive license to research, develop and commercialize compounds that modulate this target, Alectos receives an undisclosed upfront payment and funding for research to include study of the firm's existing portfolio of compounds targeting Alzheimer's disease. Alectos, a spin-out of Canada's Fraser University, is eligible to receive a total of $289 million in upfront, research, development and regulatory milestones and tiered royalty payments on sales of any products resulting from this collaboration.

Alectos and Merck will collaborate on discovery efforts and preclinical development. Merck is responsible for clinical development and will have worldwide marketing and commercialization rights to any resulting products.