Merck Licenses Amrad Technology to Develop New Asthma Drugs.

Business Editors/Health/Medical Writers

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--June 23, 2003

Merck & Co., Inc. and Amrad Corporation Limited (ASX:AML) today announced an exclusive licensing and multi-year research collaboration agreement between Merck Sharp & Dohme (Australia) Pty. Limited, the Australian subsidiary of Merck, and Amrad. Based on the results of the collaboration, Merck will seek to develop drugs with therapeutic potential in areas such as asthma, other types of respiratory disease, and oncology.

Under the agreement with Merck, Amrad will receive an upfront payment of $5 million. Total potential payments to Amrad by Merck based on the successful development of a human health product for all indications would amount to a total of $112 million. Amrad would also receive royalties for commercialized products. Amrad and Merck will work together to investigate drug candidates, with Merck being solely responsible for all clinical development and marketing.

Dr. Peter S. Kim, president of Merck Research Laboratories, cites this agreement as a significant entry by Merck into the biologics arena and consistent with Merck's continuing emphasis on external partnerships to supplement its world-class research capabilities.

"We are delighted to broaden our longstanding relationship with Amrad. This agreement will help to accelerate our development efforts in the biologics arena where we already have substantial technical and scientific capabilities," Dr. Kim said.

Amrad Managing Director, Dr Sandra Webb, said this deal demonstrates the value of Amrad's drug discovery program and intellectual property. It confirms the excellence of the basic research conducted at the Cooperative Research Center for Cellular Growth Factors (CRC-CGF) and Melbourne's Walter and Eliza Hall Institute, and Amrad's ability to extend and commercialize that research.

"We are delighted to enter this collaboration with Merck as its strong skills in development and marketing make Merck an ideal partner. More importantly, we believe that by collaborating with Merck we can accelerate the pre-clinical investigation and clinical development of drugs based on this exciting target," Dr. Webb said.

About Merck

Merck & Co., Inc. is a global, research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health, directly and through joint ventures.

Merck Forward-Looking Statement 

This press release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties which may cause results to differ materially from those set forth in the statements. The forward-looking statements include statements regarding product development. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Additional detailed information concerning a number of factors that could cause actual results to differ materially is available in Item 1 of Merck's Annual Report on Form 10-K for the year ended Dec. 31, 2002, in its periodic reports on Form 10-Q and in its reports on Form 8-K (if any). Copies of these forms are available on request to Merck's Office of Stockholder Services.

About Amrad

Amrad Corporation Limited is an Australian drug discovery and development based biotechnology company. Amrad's in-house R&D expertise is focused on five flagship status projects in the areas of allergy and inflammation, anti-infectives and neurological indications. Further information about projects in drug discovery and development can be found at www.amrad.com.au.