The InVivo Blog has the scoop, here. Strictly on the D/L, D/L* -- though, as neither party has seen fit to make a press release, "Investor FAQ", or other public comment about it, mind you:
It seems New Merck has quietly terminated development of MK-2866, a selective androgen receptor modulator -- it hoped could be used to treat muscle and bone disorders. Back in 2007, Merck paid $40 million in up-front fees to license the candidate from GTx. Its GTx chemical name is Ostarine -- I guess now it ought to be called NOstarine -- per page 128 of Monday's Merck Form 10-K:
. . . .Old Merck and GTx, Inc. (“GTx”) entered into an agreement providing for a research and development and global strategic collaboration for selective androgen receptor modulators (“SARMs”), a new class of drugs with the potential to treat age-related muscle loss (sarcopenia) as well as other musculoskeletal conditions. Merck has discontinued internal development of MK-2866 (which is a SARM) under this agreement, and is currently discussing next steps with GTx. . . .
As InVivo points out, GTx will likely see its stock price decline, as a result -- with milestone completions, the MK 2866 deal would have paid GTx up to $462 million. Not any longer, it would seem.
So the rationalization and prioritization of New Merck's R&D continues.
* D/L, D/L is "on the down-low, down-low" -- essentially through clenched teeth, that is. I'll be on jets most of the day, so this will likely be the only post for March 4, 2010. Keep it spinnin' in Good Karma!