Theravance has signed a collaboration agreement with Merck to develop and commercialize new small molecule therapeutics directed toward a target being investigated for the treatment of hypertension and heart failure.

In exchange for granting Merck a worldwide, exclusive license to its therapeutic candidates, San Francisco-based Theravance will receive a $5 million upfront payment, funding for research, and be eligible for milestone payments totaling up to $148 million for the first indication and royalties on worldwide net sales of any products derived from the collaboration.

Theravance currently develops and commercializes small molecule medicines across therapeutic areas, including respiratory diseases, bacterial infections and central nervous system/pain.