Merck Inc. (MRK) recently returned all rights to metabotropic glutamate receptor 4 (mGluR4) positive allosteric modulator (PAM) program to its partner Addex Pharmaceuticals, a Switzerland based biopharmaceutical company. Addex Pharmaceuticals is working on prioritizing its pipeline and intends to develop mGluR4 PAM for Parkinson’s and other diseases on its own. Addex will acquire the rights to intellectual property and know-how for the candidate.
Addex Pharmaceuticals is a drug discovery and development company that uses its proprietary discovery platform to address receptors and other proteins that are developed into attractive targets for modulation of important diseases which have significant unmet needs. The company’s main pipeline candidates include dipraglurant (ADX48621, an mGluR5 negative allosteric modulator or NAM) in phase IIa trials for treating Parkinson’s disease levodopa-induced dyskinesia (PD-LID), and ADX71149 (mGluR2 PAM) being developed for schizophrenia by partner Johnson and Johnson (JNJ). Addex’s preclinical programs include mGluR2 NAM for treating Alzheimer's disease and depression; mGluR4 PAM for Parkinson's and other diseases; GLP1R PAM for type II diabetes; FSHR NAM for endometriosis and benign prostatic hyperplasia; and GABABR PAM for chronic pain, urinary incontinence and other disorders.
Our Recommendation
We currently have a Neutral recommendation on Merck. The stock carries a Zacks #3 Rank (Hold rating) in the short run.
Merck is currently facing issues such as patent expirations of key drugs, EU pricing pressure, US health care reform, and pipeline setbacks. We believe the company will continue resorting to cost-cutting initiatives to drive the bottom line. Meanwhile, some of the company’s recent launches should start contributing significantly to the top line in the forthcoming quarters.
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
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