Merck Signs Licensing Agreement with Japan Tobacco

Source from:  26th September 2008 pharmaceutical-business-review.com By Staff Writer 09/28/2008

Merck & Co and Japan Tobacco, an international manufacturer of tobacco products, have signed a worldwide licensing agreement to develop and commercialize JTT-305, an investigational oral osteoanabolic agent for the treatment of osteoporosis, a disease which reduces bone density and strength and results in an increased risk of bone fractures. Under the terms of the agreement, Merck gains worldwide rights, except for Japan, to develop and commercialize JTT-305. Japan Tobacco (JT) will receive an upfront payment and is eligible to receive additional cash payments upon achievement of certain milestones associated with the development and approval of a drug candidate covered by this agreement. JT will also be eligible to receive undisclosed royalties from sales of any drug candidates that receive marketing approval. JTT-305 is an investigational oral calcium sensing receptor antagonist that is currently being evaluated by JT in Phase II clinical trials in Japan for its effect on increasing bone density and is in Phase I clinical trials outside of Japan. The effective date of the collaboration agreement is subject to the expiration or earlier termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Noriaki Okubo, president of pharmaceutical business at JT, said: "Through this agreement with Merck, JT is well positioned to maximize the therapeutic potential for JTT-305 as a possible future option for patients with osteoporosis." Enditem