NEW YORK (TheStreet) -- Merck (MRK) - Get Report said Wednesday it has worked out an exclusive license agreement with Ariad Pharmaceuticals (ARIA) for ridaforolimus, an inhibitor for the treatment of multiple cancer types.
Under the agreement, Ariad will receive a $50 million upfront fee, leading Merck to acquire full control of the development and worldwide commercialization of ridaforolimus. Ariad also is eligible to receive milestone payments associated with regulatory filings and approvals of ridaforolimus, including those related to the achievement of significant sales thresholds.
Ariad would be receiving royalties on global net sales of ridaforolimus.
Ariad stock is unchanged at $3.81 a share in premarket trading Wednesday, while shares of Merck edged down 1.6% to $35.25.
-- Reported by Andrea Tse in New York
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