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Merck, Ranbaxy drug development deal called off

Merck, Ranbaxy drug development deal called off
PTI
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First Published: Thu, Jan 06 2011. 02 50 PM IST
Updated: Thu, Jan 06 2011. 02 50 PM IST
New Delhi: US drug maker Merck & Co has terminated its nearly two-year-old alliance with Ranbaxy Laboratories to develop anti-infective medicines, which could have fetched the Indian firm $100 million over a period of five-year.
Both Ranbaxy and MSD Pharmaceuticals, Indian affiliate of US-based Merck & Co Inc confirmed the development, but refused to give the details or reasons for ending the pact.
The agreement between Merck and Ranbaxy, was signed in May 2008, just a month before Ranbaxy’s former promoters billionaire brothers Malvinder and Shivinder Singh sold their stake in it.
“Yes, the agreement has been called off but cannot give the details,” a Ranbaxy spokesperson said.
The pact could have resulted in payments of $100 million to the Indian firm over a period of five-year.
As per the agreement, Ranbaxy and Merck were to work together to develop clinically validated anti-bacterial and anti-fungal drug candidates.
The spokesperson for MSD Pharmaceuticals confirmed the development. “I can only confirm that research partnership has ended, but I cannot tell the reasons for it.”
Ranbaxy scrips were today trading at Rs597.85 per share down 0.76% from the previous close during the afternoon trade on the Bombay Stock Exchange.
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First Published: Thu, Jan 06 2011. 02 50 PM IST