* Ariad to receive $50 mln upfront payment from Merck
* Says Merck will have developing and marketing rights
* Ariad shares up 9 pct pre-market
May 5 Ariad Pharmaceuticals Inc ARIA.O said
its partner Merck & Co Inc (MRK.N) will acquire all development
and marketing rights of their experimental cancer treatment,
As per the agreement, Ariad will receive an upfront cash
payment of $50 million from Merck. Ariad will also be
reimbursed for expenses it has incurred on ridaforolimus since
January 1, which is estimated to be around $19 million.
Ariad will also be eligible to receive up to $514 million in
regulatory and sales milestones based on the successful
development and commercialization of ridaforolimus in multiple
This includes $65 million in milestones associated with the
potential sarcoma indication, which is currently in late-stage
trial, the companies said in a statement.
Merck will fund 100 percent of future development,
manufacturing and commercialization of the program, effective
immediately, the companies said.
Shares of Ariad were trading up about 9 percent at $4.15
Wednesday in pre-market trade. They had closed at $3.81 Tuesday
Merck shares closed at $35.81 in the New York Stock
(Reporting by Krishnakali Sengupta in Bangalore; Editing by