Merck to Develop, Commercialize Cubicin in Japan

Cubist Pharmaceuticals announced it has entered into a license agreement with Merck for the development and commercialization of the antibiotic Cubicin in Japan.

Merck will develop and commercialize Cubicin (daptomycin for injection) through its wholly owned subsidiary, Banyu Pharmaceutical. With this agreement, Cubist said it now has a full complement of partners ready to commercialize Cubicin -- its first-in-class lipopeptide antibiotic for treating complicated skin and skin structure infections -- around the world.

In exchange for development and commercialization rights in Japan, Merck will pay Cubist $6 million in cash upfront. An additional $39.5 million in total milestone payments could be paid to Cubist for regulatory and sales achievements. Merck also will pay Cubist an undisclosed price for the supply of Cubicin vials to be sold in Japan.

"Banyu has for many years demonstrated strength in the clinical and regulatory environment in Japan and is an experienced commercialization partner," Mike Bonney, president and CEO of Cubist, said. "Banyu has been tremendously successful with the commercialization of Tienam, the first carbapenem antibiotic launched in Japan."