Merck Returns Rights for Safinamide to Newron
The termination of this agreement will become effective in April 2012 and will result in approximately €40 million of additional costs for the Merck Serono division in the fourth quarter of 2011. These costs will be excluded from both the division’s and the Merck Group’s fourth quarter underlying core operating result.
Merck’s decision was made as part of the ongoing review and re-prioritization of its R&D pipeline. In Merck’s view, safinamide has a more limited market potential than originally anticipated. The book value of safinamide was initially written-down in Merck’s Q4 2010 financial statements and its remaining book value was fully written-off during the second quarter of 2011.
Merck will meet its contractual and ethical commitments regarding the ongoing clinical development program for safinamide. Merck will work with Newron to execute an appropriate transfer of the program to Newron. The collaboration of Merck and Newron on pruvanserin and sarizotan continues.
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