Merck gets Japan rights to Cubicin

LEXINGTON, Mass., March 22 (UPI) -- U.S. drug firm Cubist Pharmaceuticals said Thursday it has licensed to Merck the rights to develop and market the drug Cubicin in Japan.

Merck's Japanese subsidiary Banyu will market the injectable treatment, a first-in-class lipopeptide antibiotic for the treatment of infections, including MRSA, the company said.

Under the licensing deal, Merck has agreed to pay Cubist $6 million in cash upfront, with the potential for $39.5 million in milestone payments.

Merck has further agreed to pay Cubist an undisclosed amount for the supply of Cubicin vials to be sold in Japan.

Cubist retains the U.S. marketing rights to the treatment.