Oftentimes money can stand in the way of health. In light of our current economic woes, many individuals find that the rising cost of healthcare outweighs the need for insurance and proper care. The same goes for scientific and medical companies in need of funding for further research and development. To accomplish their mission, many companies form strategic partnerships to obtain cash injections.
Such an arrangement was announced yesterday between Lpath Inc. (OTCBB: LPTN) and Merck Serono, a division of Germany-based Merck KGaA. The alliance was fueled by the fact that Merck Serono holds an annual R&D investment of around $1.5 billion. The company funnels this capital for specialist-focused therapeutic areas.
Lpath Inc. concentrates on bioactive lipid-targeted therapeutics for the treatment of human diseases such as cancer, multiple sclerosis and more. The company’s partnership with Merck Serono will launch global research and development of Lpath’s phase 1 monoclonal antibody, ASONEP, for the treatment of cancer. The alliance will supply Lpath with $23 million of upfront payments from Merck Serono to complete phase 1 clinical trials of ASONEP.
“Merck Serono, which has distinguished itself as an outstanding developer and marketer of innovative drugs in key therapeutic areas, is an ideal partner for ASONEP and for Lpath. We expect this alliance to further validate the importance of bioactive-lipid-targeted therapeutics and extend Lpath’s leadership position in this exciting new field,” Scott Pancoast, president and CEO of Lpath stated in a press release.
Merck Serono has the option to continue participation beyond phase I with an additional payment of $28 million and the continued funding of development activities. According to the press release, additional payments will be made on achievement of development, regulatory, and sales milestones that could total up to $422 million should ASONEP be approved in multiple indications.
“This alliance is a promising strategic fit for Merck Serono’s business model and culture,” Vincent Aurentz, executive vice president portfolio development and member of the Merck Serono executive board stated. “ASONEP is an innovative drug candidate and the first monoclonal antibody targeting a bioactive lipid to be tested in clinical trials. We believe that S1P, the bioactive-lipid target of ASONEP, plays an important role in cancer.”
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