Merck, Ranbaxy to partner on anti-fungal and anti-bacterial drug candidates

GURGAON, India Two pharmaceutical giants on opposite sides of the planet will collaborate to develop anti-fungal and anti-bacterial drug candidates.

Ranbaxy Labs, India’s largest pharmaceutical company, and Whitehouse Station, N.J.-based Merck formed a product development agreement, whereby Ranbaxy will develop and test drug candidates while Merck further develops, tests and markets them.

The collaboration will begin this year and last for five years, after which the two companies can renew it. Ranbaxy will receive an undisclosed initial sum, as well as royalties for sales of products the companies develop.

They will concentrate on developing anti-fungal and anti-bacterial drug candidates.