Merck Takes Stake In Biotech Firm GTx

Merck & Co. and Memphis, Tenn.-based GTx have established a collaboration around the discovery and development of selective androgen receptor modulators (SARMs), a new class of drugs that could treat musculoskeletal conditions. Merck gains access to Ostarine, GTx's lead SARM candidate, currently in Phase II trials for the treatment of muscle loss in cancer patients. In exchange, GTx will receive a $40 million up-front fee and $15 million in research reimbursements to be paid over the three years of the collaboration. It could rake in up to $422 million in milestones as the drug reaches the market. Merck will also take a $30 million stake in the biotech firm.