Merck KgaA to increase focus on oncology
Merck KgaA, of Darmstadt in Germany is to focus clinical development resources even more strongly on its oncology pipeline.
Merck KgaA, of Darmstadt in Germany is to focus clinical development resources even more strongly on its oncology pipeline.
It has therefore decided to discontinue further development of two early-stage diabetes projects: EML 16336, an insulin mimetic that stimulates glucose uptake; and the aldose reductase inhibitor IDD 676. Development of both projects has been on hold since an interim analysis in the first quarter of this year; the company has already decided to discontinue the cost-intensive development of another antidiabetic drug, EML 16257, an agent that stimulates insulin secretion.
'Over the last months, we have seen a lot of good reasons for increasing optimism in oncology, together with disappointments in diabetes,' said ceo Bernhard Scheuble. As a consequence, we have to focus our development efforts even more strongly.'
Merck is now considering several options regarding its preclinical research and clinical development capacities, in addition to the already announced performance review of its international pharmaceutical production and supply chain organisation. Diabetes r&d activities are mainly located in France.
The company has also reviewed potential litigation risks and may post additional exceptional charges in 2003. Merck is involved in on-going legal proceedings in the US and elsewhere, in respect of allegedly flawed price reporting in connection with the Medicaid health benefits programme funded by the US federal government and the states. Exceptional charges for pharma restructuring and litigation provision are likely to total €100-200m.