Orchid Chem gets $1.5 m initial milestone payment from Merck

Orchid Chemicals & Pharmaceuticals has received initial payment of $1.5 million from its R&D partner Merck for completing a preliminary milestone in an anti-infective research programme. Orchid has a collaborative research agreement with a subsidiary of Merck & Co. Under the terms of the agreement made in 2008, Orchid is eligible to receive payments totalling over $100 million on achieving various research and development milestones involving multiple candidates. Orchid is also eligible to receive significant royalties on worldwide net sales of any products commercialised under the agreement. The research agreement focuses on discovery, development and commercialisation of novel agents for the treatment of bacterial and fungal infections for which Orchid received an upfront payment. Orchid's drug discovery efforts are conducted through its wholly-owned subsidiary, Orchid Research Laboratories.