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Metabasis (MBRX) To Receive $6M Fee From Merck, But Still Warns About Its Future

June 10, 2009 4:35 PM EDT
Metabasis Therapeutics, Inc. (Nasdaq: MBRX) announced that its four year research collaboration with Merck & Co., Inc. (NYSE: MRK), focused on the discovery and development of AMP protein kinase (AMPK) activators, has yielded a lead candidate that Merck has selected to advance into late preclinical development.

In addition, under an amended agreement, Merck has agreed to pay Metabasis a one-time fee of $6 million that satisfies all future obligations for milestones and royalty payments.

Metabasis warned that even with the $6 million payment described above, if the Company is unsuccessful in the near-term in raising additional capital, the Company may be forced to cease its operations entirely.

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