Merck Ends Deal with Arena - Analyst Blog

Merck & Co (MRK) recently informed its partner Arena Pharmaceuticals (ARNA) that it was pulling out of a collaboration agreement pertaining to the development of an atherosclerosis drug. 

The decision by Merck to discontinue the development of the candidate, MK-1903, a niacin receptor agonist for treating atherosclerosis, followed disappointing results from a recently completed mid-stage study. The randomized, double-blind, placebo-controlled trial evaluated the safety, tolerability and potential efficacy in patients with dyslipidemia. The study did not meet the primary objective for efficacy. The drug failed to significantly raise patients' levels of good cholesterol (HDL) compared to a placebo. However, Merck’s decision to pull out of the deal was not related to any safety concerns pertaining to the drug. 

Atherosclerosis is the thickening of the artery walls which often leads to heart attacks. We believe, the decision by Merck to end the collaboration is a major setback for Arena, a clinical-stage biopharmaceutical company, as it deprives it of working with a major pharma player. The company has no approved product in the market. Earlier in the month, Arena had filed a New Drug Application (NDA) with the US Food and Drug Administration (FDA) for lorcaserin, the company’s candidate for weight management, including weight loss and its maintenance. The NDA submission is based on a data package from lorcaserin's development from 18 clinical trials totaling 8,576 patients.
 
Lorcaserin would be Arena's first drug to hit the market if the U.S. agency approves. In the market, lorcaserin will compete with Qnexa of Vivus Inc. (VVUS) and Contrave32 of Orexigen Therapeutics Inc. (OREX). Both candidates are undergoing development.
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