Astex Pharmaceuticals, a pharmaceutical company dedicated to small molecule therapeutics for oncology and central nervous system diseases, entered into a worldwide research collaboration and license agreement with Merck to identify small molecule candidates with activity towards a tumor suppressor protein for the treatment of cancer.

Astex will apply its fragment-based drug discovery platform to develop compounds targeting multiple forms of the p53 tumor suppressor protein and provide Merck with lead compounds for further optimization and preclinical development. Merck has an exclusive global license to research, develop, and commercialize candidates arising from the collaboration.

Astex will receive $35 million upfront and is eligible for milestone payments based on preclinical, clinical, regulatory and sales milestones, totaling approximately $500 million per program, as well as royalties on sales of any products arising from the collaboration. Merck will assume responsibility for funding all future research and development of lead candidates as well as commercialization of products globally.

“Astex is applying its fragment-based drug discovery capability to design and generate small molecule modulators tailored to a wide range of potentially important therapeutic targets,” said Harren Jhoti, President and CEO of Astex. “This new alliance builds on our existing productive collaboration and allows us to combine our expertise and assets with MSD’s wide-ranging oncology capabilities.”

George Addona, senior vice president discovery and translational medicine at MSD said, “At Merck we are committed to driving innovation with the goal of improving outcomes for patients with cancer. We look forward to building on our collaboration with the Astex team to advance this potentially impactful area of oncology research.”