Merck KGaA has gained worldwide co-development and commercialisation rights to Threshold Pharmaceuticals’ sole drug candidate, the small molecule hypoxia-targeted drug TH-302. The agreement provides Threshold with US$25 M upfront, a total of US$525 M in potential milestone payments, a tiered double-digit royalty on sales and options to co-promote or co-commercialise the drug in the US. For Merck, the deal provides a much-needed boost for the company’s late-stage development pipeline.