Bionomics Signs Option and License Agreement With Merck

Bionomics Limited

today announced an agreement with Merck

, known as MSD outside the United States and Canada, to discover and develop novel small molecule candidates for the treatment of chronic pain, including neuropathic pain. Under the terms of the agreement, Merck will have the option to exclusively license a compound from Bionomics for development and commercialisation. In return, Bionomics may receive option exercise fees and development and regulatory milestone payments of up to US$172 million. Bionomics may also be eligible for undisclosed royalties on net sales of products from the collaboration. Bionomics retains the right to develop and commercialise certain compounds for which Merck does not exercise its option. The initial period of the research program will be two years.