Theravance and Merck & Co enter cardiovascular disease accord

Drug developer Theravance (Nasdaq: THRX) has signed a collaboration agreement with pharma giant Merck & CO (NYSE: MRK) to discover, develop and commercialize novel small molecule therapeutics directed towards a target being investigated for the treatment of hypertension and heart failure, worth a potential $153 million.

In exchange for granting Merck a worldwide, exclusive license to its therapeutic candidates, Theravance will receive a $5 million upfront, funding for research and be eligible for milestone payments totaling up to $148 million for the first indication and royalties on worldwide net sales of any products derived from the collaboration.

"Despite years of medical advances, there remain significant unmet medical needs in the management of cardiovascular disease," said Mathai Mammen, senior vice president of research and early clinical development at Theravance. "Over the last several years, Theravance has gained significant insights into the design of novel molecules directed towards certain cardiovascular targets," he added.