Merck Sharpe and Dohme and Lycera to collaborate on new drugs

Merck Sharpe and Dohme has entered into a research collaboration with Lycera that will see the two firms produce new treatments for autoimmune disease.

The partnership will see Lycera receive an upfront fee of $12 million (7.35 million pounds) and additional milestone payments of up to $295 million for its part in developing drug candidates for conditions such as rheumatoid arthritis, psoriasis and multiple sclerosis.

Research will focus on targeting the retinoic acid-related orphan receptor in T-helper 17 cells, which have been identified as key mediators of inflammation.

This agreement will allow Lycera to expand the scope of its studies in this field and can potentially help to address unmet clinical needs.

Dr Don Nicholson, vice-president and head of worldwide discovery for the respiratory and immunology franchise at Merck Research Laboratories, said: "Lycera has established a strong reputation for innovation in this area and we look forward to working together to advance this programme."

Last week, Merck Sharpe and Dohme published new clinical study data on its HIV drug Isentress, which demonstrated its efficacy in combination with tenofovir/emtricitabine over three years.