In addition, the two entities have also signed an exclusive distribution agreement for the commercialization of Daxas in the UK.

Under the terms of the agreement, Nycomed will receive an undisclosed upfront fee from Merck and is eligible for certain payments based on defined regulatory and commercialization milestones for Daxas. If approved by the relevant regulatory authorities, both the parties will co-promote Daxas in France, Germany, Italy, Spain, Portugal, and Canada.

Nycomed is expected to manufacture and distribute the finished product in all countries covered by the co-promotion agreement. In the UK Merck will have exclusive commercialization rights and Nycomed will supply finished product and has retained a co-promotion option. Further details of the agreement were not disclosed.

Kevin Ali, senior vice president and general manager of bone, respiratory, immunology and dermatology franchise at Merck, said: "This agreement with Nycomed for a late-stage PDE4 inhibitor candidate represents a strong strategic fit for Merck.”

Hakan Bjorklund, CEO of Nycomed, said: “We are very pleased to have entered into this collaboration with Merck and we believe it’s the best partner for us.

“Nycomed’s expertise in development of roflumilast, an important new approach for the treatment of COPD, Merck’s customer oriented interactive commercial model and the regional synergies between the two companies will contribute to successfully bring Daxas to patients and doctors."

How far these agreements will help Nycomed and Merck?

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