We are committed to maximizing the value of the promising drug candidates that have resulted from our novel drug discovery research. To that end, we carefully evaluate corporate partnership opportunities, seeking agreements that have significant potential to build value and create returns for our investors. Our partnerships are intended to leverage our research and development capabilities to potentially move drugs to the market faster.
We have partnerships with pharmaceutical companies, including Merck & Co., Inc. and Ortho-McNeil Pharmaceutical, Inc., a Johnson & Johnson company.
Merck
In our partnership with Merck, we are collaborating on three GPCRs to develop therapeutics for atherosclerosis and other disorders. We believe one or more of these GPCRs plays a role in regulating plasma lipid profiles, including HDL cholesterol, the so-called "good cholesterol," and is responsible for the HDL-raising activity of niacin. There are very successful drugs available for lowering LDL cholesterol. However, development of novel, effective therapies to increase HDL cholesterol remains a major focus of research. We believe that such therapies may reduce the risk of atherosclerotic heart disease and compete in the large dyslipidemia market.
In January 2008, Merck initiated a Phase 1 clinical trial under our partnership of a second generation oral niacin receptor agonist. From the inception of this collaboration through December 31, 2007, we have received $18.0 million from Merck in upfront and milestone payments, and equity investments totaling $8.5 million. We may receive additional milestone payments of up to $28.0 million for Merck's clinical and marketing achievements, as well as royalty payments associated with Merck's commercialization of any products discovered under the agreement. In addition, we received research funding from Merck through December 31, 2007 totaling $27.5 million.
Ortho-McNeil
In our partnership with Ortho-McNeil, we are collaborating on the development of compounds for the treatment of type 2 diabetes and other disorders by targeting the Glucose-Dependent Insulinotropic Receptor, or GDIR. The GDIR is a novel receptor discovered by Arena that, in our preclinical models, demonstrated the ability to stimulate insulin production in response to increases in blood glucose. Results from initial clinical trials of APD668, an Arena-discovered, oral drug candidate targeting the GDIR, suggest that the GDIR improves glucose control in patients with type 2 diabetes. Based on the results from these studies, Ortho-McNeil put APD668 on hold and advanced a potentially more potent Arena-discovered GDIR agonist into preclinical development.
From the inception of this collaboration through December 31, 2007, we received $27.5 million from Ortho-McNeil in upfront and milestone payments and $7.2 million in research funding. We are eligible to receive a total of $295.0 million in milestone payments for each compound, as well as royalty payments associated with Ortho-McNeil's commercialization of any products discovered under the agreement.
(NOTE: This page was last updated: May 19, 2008.)
