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Serono: Parkinson's drug deal will fit with Merck merger 18th October 2006 By Brett Scottorn Serono has in-licensed phase III Parkinson's drug safinamide in a deal with Newron Pharmaceuticals. The addition of safinamide to Serono's late stage R&D pipeline will fill the gap left by Merck KGaA's halted Parkinson's disease (PD) product, sarizotan, when the two companies merge to form Merck-Serono Biopharmaceuticals. However, the drug is not expected to have a large impact on the PD market and thus will not be a key growth driver for the company. 'Content Serono has competed a licensing deal with Newron Pharmaceuticals regarding PD drug, safinamide. The deal involves an undisclosed upfront payment as well as milestone and royalty payments worth up to $200 million. Serono will resume all further development costs while Newron will maintain the option to co-promote the drug in Spain and Italy. An incremental milestone and royalty agreement will see both parties rewarded from the success of safinamide. Safinamide, with its multiple action has shown promise in phase III trials in treating early stage PD when used in combination with an oral dopamine agonist. However, the market outlook is limited and safinamide would only reach blockbuster status if it can show significant advantages over current treatments and broaden its indications into Alzheimer's disease and Restless Leg syndrome. Datamonitor expects safinamide to reach the market in 2009, reaching sales for PD of $22 million by 2015. However, after securing a major development and marketing partner the outlook for safinamide is set to improve considerably. The safinamide deal comes at a time when Serono is finalizing the takeover with Merck KGaA. Serono has been searching a buyer for some time and has managed to persuade Merck into a takeover after its failed bid for Schering AG. While Serono failed to meet all criteria Merck KGaA was seeking, it will be able to strengthen the company's oncology portfolio as well as provide impressive sales through blockbuster MS drug, Rebif. While the safinamide deal is unlikely to have had a major bearing on Merck's decision to acquire Serono, the drug will help replace the German drug maker's halted PD pipeline product, sarizotan. ---------------------------------------------------------------------- To sign-off Parkinsn send a message to: mailto:[log in to unmask] In the body of the message put: signoff parkinsn