Merck & Co. (MRK) will provide up $90 million in funding to
the California Institute for Biomedical Research, a not-for-profit
organization created to accelerate the development of new medicines
from basic biomedical research.
The drug maker said it will provide the funding over a
seven-year period and it has an option to obtain an exclusive
commercial license to any proteins or small molecule therapeutic
candidates derived from the institute's work.
The institute, also known as Calibr, will be free to seek
alternative funding sources for any projects not licensed by Merck
and it plans to access funds from government and non-government
sources.
Revenue derived from licenses will be shared between Calibr and
the collaborating institutions.
"Calibr will provide an important venue where basic research and
drug discovery scientists may leverage each others' strengths in
the fight against disease," said Peter S. Kim, president of Merck
Research Laboratories and member of Calibr scientific advisory
board.
Merck and its fellow drug makers have raced to reshape their
businesses ahead of the looming expiration of patents on some of
their biggest drugs. Earlier this month, Merck and Abbott
Laboratories (ABT) formed a collaboration to develop a fluorescence
in situ hybridization-based companion diagnostic test that could
aid Merck's development of an investigational cancer therapy.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com