Merck/Addex Pharmaceuticals – Top 10 biotech deal terminations of 2011

Posted under Addex Pharmaceuticals, Blog, Companies, Diagnostics, Funding, Medical Devices, Medical Supply, Merck, Pharmaceuticals, Startups, Universities, Videos by John Carroll

Partners: Merck/Addex Pharmaceuticals
Based: $MRK - Whitehouse Station, NJ; $ADXN - Geneva
Termination date: July 2011
Length: 3.5 years
Deal: $702 million
Program: ADX63365, an mGluR4 positive allosteric modulator (PAM) for schizophrenia, and backup candidates

What went wrong: Just weeks after Merck had signed an initial pact with Addex covering PAMs targeting mGluR4 for the treatment of Parkinson's disease, Merck was back inking a deal on ADX63365 in schizophrenia.

Darryle Schoepp, Ph.D., senior vice president and franchise head, neuroscience, at Merck Research Laboratories said at the time that it was Merck that first identified "the potential for targeting mGluR5 to treat schizophrenia." And it was worth a $22 million upfront payment and $680 million to license the program--a hefty sum for a preclinical compound.

Last July, Addex buried the news of Merck's hand-back in its press release on 6-month results. And then in September, Merck shed the Parkinson's program.

It's all part of a perfect storm for Addex, which started late in 2009 when its lead drug--then up for another big partnership deal--triggered liver problems in a study, forcing the company to drop the drug. Their stock value plunged 75%. CEO Vincent Mutel left in July, just days before a company restructuring eliminated 1 in 4 jobs. Merck's departure followed soon after.