Addex, Merck ink potential $700 million licensing deal

ZURICH, Switzerland Addex Pharmaceuticals is stating that it may receive more than $700 million from a licensing deal it made with Merck regarding its drug ADX63365, which is used to treat schizophrenia, Reuters reported.

The company will receive $22 million upfront from Merck for the drug, which also covers undisclosed indications for the drug and will then be eligible for up to $680 million in milestone payments.

Addex also announced that its lead compound, ADX10059 failed to meet its main target in a mid-stage Phase IIa clinical trial for acute anxiety. Development of ADX10059 for two other indications, gastroesophageal reflux disease and migraines, will continue as planned, according to the company.