Amrad scores third $3m milestone payment

Amrad (ASX: AML) will receive its third US$3 million payment from Merck & Co after reaching another preclinical milestone in the development of new asthma therapies based on the IL-13 receptor.

The payment will bring the total received by Amrad from the collaboration to date to US$14 million, out of a possible US$112 million.

Under the terms of the agreement between Amrad and Merck, the two companies are collaborating on research and development to select lead candidates for clinical trials. Merck will be solely responsible for clinical development and marketing.

Amrad CEO Pete Smith said that, while he could not give specific details of the milestone, it marked the beginning of preclinical development of potential lead candidates. He said Amrad expected clinical trials would commence around the end of 2005, although exact timing would be in the hands of Merck.

Merck, Sharp & Dohme (Australia) managing director Will Delaat said he was delighted with the progress of the project to date.

"Our collaboration with Amrad has, and continues to be, highly productive," he said.