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Sept 17 (Reuters) - SurModics Inc (SRDX.O) said Merck & Co Inc (MRK.N) will discontinue a June 2007 license and research collaboration agreement, a move that will trigger an additional payment of $9 million to the drug delivery technology company.
Shares of SurModics fell 18 percent to $32 in trading after the bell. They closed at $39.11 Wednesday on Nasdaq.
Merck’s decision comes after a strategic review of its business and product development portfolio and is not based on any concerns about the safety or efficacy of SurModics’ drug delivery systems, the company said in a statement.
The companies had entered into an agreement in June last year to jointly develop and commercialize SurModics’ drug delivery system with triamcinolone acetonide and other products that combine Merck’s drug compounds for the treatment of serious retinal diseases.
Under the agreement, SurModics received an upfront licensing fee of $20 million and was eligible to receive up to an additional $288 million in fees and development milestones.
In August of this year, the company said Merck had suspended enrolment in a mid-stage trial for I-vation TA in patients suffering from diabetic macular edema (DME). (Reporting by Anand Basu in Bangalore; Editing by Deepak Kannan)