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 partnerships 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-Janssen Pharmaceuticals, 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 October 2008, we announced that Merck completed a randomized, double-blind, placebo-controlled Phase 1 program of a second generation oral niacin receptor agonist under our partnership and, having evaluated safety, tolerability and pharmacokinetics, is planning to initiate a Phase 2 clinical program. From the inception of this collaboration through September 30, 2008, we have received total payments from Merck of $54.4 million. We may receive a total of up to $82.0 million in pre-commercial payments as well as tiered royalty payments associated with Merck's commercialization of any products discovered under the agreement.
Ortho-McNeil-Janssen
In our partnership with Ortho-McNeil-Janssen, 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. Under our partnership, Ortho-McNeil-Janssen initiated a Phase 1 clinical trial in December 2008 of APD597, a novel oral drug candidate that targets the GDIR for the treatment of type 2 diabetes.
From the inception of this collaboration through September 30, 2008, we have received total payments from Ortho-McNeil-Janssen of $47.3 million. 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-Janssen's commercialization of any products discovered under the agreement.
(This page was last updated: January 5, 2009. Additional information regarding Arena is available in its SEC filings.)
