Merck Sharpe and Dohme licenses drug programme from Exelixis

Merck Sharpe and Dohme has agreed a new licensing deal with Exelixis for a PI3K-delta research and development programme.

The agreement will provide Merck with a worldwide exclusive license to research, develop and commercialise compounds generated by the initiative, which focuses on a class 1 family of phosphoinositide-3 kinases expressed by the immune system.

PI3K-delta is considered a promising drug development target due to potential applications in therapeutic areas such as inflammation and oncology, with Exelixis' most advanced preclinical PI3K-delta inhibitor XL499 set to be covered by the arrangement.

Under the terms of the deal, Merck Sharpe and Dohme will pay an initial upfront fee of $12 million (7.65 million pounds), with potential development and regulatory milestone payments set to total up to $239 million.

Dr Don Nicholson, vice-president and head of worldwide discovery for the respiratory and immunology franchise for Merck Research Laboratories, said: "Collaborations like this are an important part of our strategy as we seek new ways to address unmet needs in inflammatory disease and oncology."

Last week, the company published positive new clinical trial data for its multiple myeloma drug Zolinza, showing its efficacy in combination with bortezomib.