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Merck Signs Seven-Year Clinical Collaboration with Decode; Buys $10M of Decode Stock

This article serves to correct the initial investment Merck made in Decode. Merck bought $10 million worth of Decode shares, not $145 million as originally reported.


NEW YORK, Feb. 26 (GenomeWeb News) - Decode Genetics and Merck plan to conduct clinical trials and to develop pharmacogenomic tests in a seven-year collaboration, Decode said today.


Decode will run clinical trials of compounds provided by Merck, incorporating data such as disease subtypes, biomarkers, genotypes, and gene expression patterns. Its approach helps select optimal trial cohorts and analyze drug response in relation to phenotypic and genetic data, Decode said. Depending on trial results, Decode and Merck may also develop pharmacogenomic tests to identify patients who would benefit especially from a drug.


Under the agreement, Decode will receive a technology access fee, research funding, and milestone payments, as well as royalties on sales of drugs and diagnostics resulting from the collaboration. In addition, Merck has purchased $10 million in Decode common stock, and has received a warrant to purchase up to $50 million additional shares at $29 each over the next five years.

The Scan

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The US Justice Department has dropped visa fraud charges against five Chinese researchers, according to the Wall Street Journal.

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