Amathus Therapeutics, Merck In Agreement For Neurodegenerative Disease-Targeted Therapies

Privately-held Amathus Therapeutics has entered into a strategic collaboration with Merck & Co MRK to develop novel small molecule therapeutic candidates for neurodegenerative diseases.

• Under the terms of the agreement, Amathus will be responsible for identifying and progressing novel chaperone activators through preclinical discovery.
• Merck has the option to acquire Amathus Therapeutics and its pipeline of mitochondrial-targeted candidates for the treatment of neurodegenerative disorders and renal diseases.
• Amathus will receive an upfront payment from Merck. If Merck exercises its option, Amathus will be eligible for milestone payments associated with candidates' successful development above $500 million per program.
• Price Action: MRK shares are down 0.35% at $76.54 on the last check Wednesday.