Bionomics Limited (ASX:BNO, ADR:BMICY) should trade firmer after entering into an exclusive Research Collaboration and License Agreement with Merck (NYSE:MRK).
The collaboration is targeting cognitive dysfunction associated with Alzheimer’s disease and other central nervous system conditions.
Under the agreement, Merck will fund all research and development, including clinical development, and will be responsible for worldwide commercialisation of any products from the collaboration.
Bionomics will receive upfront payments totalling US$20 million and is eligible to receive up to US$506 million for achievement of certain research and clinical development milestones and undisclosed royalties on any product sales.
This significant agreement, Bionomic's second with Merck, further validates its drug discovery platforms.
In July 2013, Bionomics announced an option and license agreement with Merck to discover and develop novel small molecule candidates for the treatment of chronic pain, including neuropathic pain.
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