Merck Serono in deal with Affectis Pharma to develop oral neurodegenerative disease drugs

Switzerland based Merck Serono, a division of Germany’s Merck KGaA (MRK: DE), has entered into a collaboration with Munich-based drug developer Affectis Pharmaceuticals for the development and commercialization of oral compounds targeting P2X7 receptors, which are believed to be involved in neuroinflammation observed in some neurodegenerative diseases.

Under the terms of the agreement, Merck Serono will have worldwide exclusive rights to develop and commercialize selected compounds. The contract also includes a research collaboration focusing on P2X7 antagonist optimization. Affectis will get a modest 2.4 million-euro ($3.5 million upfront, but has the potential to receive up to 277 million euros in milestones for the first three products to come out of the collaboration, as well as undisclosed royalties.

“This agreement validates Affectis’ strategy to focus on small molecules that potentially target the neuroinflammatory aspect of some neurodegenerative diseases. We look forward to collaborating with Merck Serono, an industry leader in the field,” said Manfred Ruediger, chief executive of Affectis.