Ambrilia takes action against Merck

Montreal-based biotechnology company Ambrilia Biopharma Inc has submitted a Request for Arbitration with the International Chamber of Commerce (ICC) to resolve disputes related to a Confidentiality Agreement and Exclusive License Agreement between Ambrilia and Merck & Co Inc and Merck Sharpe & Dohme Research Ltd.

Following many attempts at resolution with Merck, Ambrilia has decided that seeking arbitration was the most efficient way to reach a prompt resolution to the situation.

'Our team at Ambrilia has worked hard and been successful in building a strong HIV protease inhibitor programme with corresponding intellectual property, thus creating a solid foundation on which to further build through a collaboration,' said Dr Philippe Calais, president and ceo of Ambrilia. 'Based on recent events, however, Ambrilia believes Merck has not met its obligations.

Ambrilia believesPPL-100 and its related compounds offer advantages to HIV patients over the currently commercialised protease inhibitors, and also believes its positions respecting the partnership will prevail in arbitration.'

Ambrilia entered into an exclusive licensing agreement In October 2006, granting Merck & Co, through an affiliate, worldwide rights to its HIV protease inhibitor programme, including lead compound PPL-100. The agreement provided for an upfront payment of $US17m and potential cash payments totaling $US215m to Ambrilia upon successful completion of development, clinical, regulatory and sales milestones, and royalties on all future product sales.

The agreement also provides for additional milestone-based cash payments and royalties on the future development and commercialisation of each back-up compound and/or related compounds developed by Merck and which fall within the scope of the Ambrilia HIV protease inhibitor programme.

On July 28, 2008, Ambrilia reported that Merck placed Ambrilia's HIV protease inhibitor PPL-100, also known as MK-8122, on a development hold pending outcome of additional basic science efforts to evaluate other PL-100 prodrugs and formulations options and that Merck was also further exploring development of potential related back-up compounds.