Addex Pharmaceuticals, allosteric modulation company has entered an exclusive worldwide license agreement with Merck & Co., Inc. to develop ADX63365, an orally available drug candidate for the potential treatment of schizophrenia and other undisclosed indications.

Addex Pharmaceuticals discovers and develops allosteric modulators, an emerging class of small molecule therapeutic agents.  ADX63365, currently in preclinical development, is a positive allosteric modulator (PAM) that targets the metabotropic glutamate receptor 5 (mGluR5), which is believed to be important as a target for the treatment of schizophrenia and other conditions. Schizophrenia is a chronic, severe, and disabling brain disease. The deal also includes mGluR5 PAM backup compounds discovered by Addex.

Under the terms of the agreement, Addex will receive $22 million and will be eligible for up to $455 million in research, development, regulatory and sales milestones for the first product developed for two indications and up to $225 million in additional development, regulatory and sales milestones for a second product developed in two indications.

 Addex will also receive royalties on sales of any products resulting from this collaboration. In addition, Addex has an option to co-promote in certain European Union countries and will participate in the joint oversight committee for further development that will be led by Merck.