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.
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 GPR119. GPR119 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 GPR119 for the treatment of type 2 diabetes.
From the inception of this collaboration through September 30, 2009, we have received total payments from Ortho-McNeil-Janssen of $50.6 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.
Merck
In October 2002, we partnered with Merck to collaborate on three GPCRs to develop therapeutics for atherosclerosis and other disorders. In February 2009, Merck advanced MK-1903 into a Phase 2a clinical trial. The randomized, double-blind, placebo-controlled trial evaluated the safety, tolerability and potential efficacy of MK-1903 in patients with dyslipidemia. According to Merck, elevation of HDL cholesterol relative to placebo did not meet the trial's pre-specified primary objective for efficacy; no safety signals were implicated as drivers of the decision to discontinue development. In December 2009, following evaluation of the trial results, Merck discontinued development of MK-1903 and informed us that the company is terminating the collaboration.
(This page was last updated: January 5, 2010. Additional information regarding Arena is available in its SEC filings.)
