$475 Million Collaboration Deal (Case Study Merck)

Research Collaboration and License Agreement
Neuromed/Merck & Co

Transaction Participants

• Neuromed is a privately held biopharmaceutical company committed to developing the next generation of chronic pain drugs. It is the only company in the world with a sole focus on target-specific calcium channel drugs.
• Merck & Co., Inc.

Burrill & Company’s Role

• The Merchant Banking Group advised Neuromed on:
  • The choice of partner
  • The appropriate deal structure and key terms
  • The deal negotiation
  • Senior decision-making at Merck
  • The deal closing process
• The transaction was closed in a tight window a few weeks before the receipt of phase II data
• Neuromed formed a global agreement to research, develop and commercialize neurological products:
  • $25M cash upfront and 2 years research funding
  • $450M in milestones and a US co-promotion option
  • NMED-160 and other targets that selectively target the N-type calcium channel

The Result

• Neuromed formed a global agreement to research, develop and commercialize neurological products including:
  • $25m cash upfront and 2 years research funding
  • $450m in milestones and a US co-promotion option
  • NMED-160 and other targets that selectively target the N-type calcium channel