Neuromed Pharmaceuticals and Merck & Co., Inc. Announce Agreement for Novel N-type Calcium Channel Compounds

Under the terms of the agreement, Neuromed grants Merck anexclusive worldwide license to research, develop and commercializeNMED-160 and other compounds that selectively target the N-typecalcium channel.

Under the terms of the agreement, Merck will make a $25 millioninitial cash payment to Neuromed. Neuromed will also receive researchfunding from Merck for two years as part of the collaborative researchprogram, including the option to renew for an additional two years.Merck is responsible for all development costs and activities.

The successful development and launch of NMED-160 for an initialsingle indication on a worldwide basis would trigger milestonepayments totaling $202 million. Milestones could increase toapproximately $450 million if a further indication for NMED-160 isdeveloped and approved and a further compound is developed andapproved for two indications. Neuromed would also receive royalties onworldwide sales of NMED-160 and any additional compounds developedunder this agreement. Additional milestone payments would be payableshould further compounds be developed. Further financial terms werenot disclosed.

Neuromed retains an option to co-promote compounds resulting fromthe agreement to specialist physicians in the United States. Underspecific conditions, Neuromed may also retain rights to developcertain compounds for indications other than pain.

"Blocking pain signaling through the N-type calcium channel is anovel approach for the treatment of pain," said Christopher Gallen,M.D., Ph.D., President and Chief Executive Officer of Neuromed. "Webelieve our partnership with Merck could enable Neuromed to realizethe significant potential value of our lead NMED-160 program and helpus achieve our goal of developing breakthrough medicines for pain, amajor unmet medical need, as well as other neurological disorders."

"Neuromed is extremely pleased to partner with Merck and to havethe opportunity to work with their scientific team. Their outstandingresearch, clinical development and marketing capabilities weresignificant factors in choosing Merck as a partner of choice," Dr.Gallen added.

"We are pleased to enter into this agreement with Neuromed, aleader in the quest for orally active, small molecule blockers of theN-type calcium channel. This partnership complements the considerableinternal research taking place at Merck to develop much-needed newmedicines for pain," said Dennis W. Choi, M.D., Ph.D., Executive VicePresident, Neurosciences at Merck Research Laboratories. "We lookforward to joining forces with Neuromed and hope that together, wewill lead the field to a new generation of pain killers."

About Neuromed Pharmaceuticals

Neuromed is a private biopharmaceutical company committed todeveloping a new generation of chronic pain drugs. It is the onlycompany in the world with a sole focus on target-specific calciumchannel drugs. Launched in 1998, Neuromed has strong financial backingwith cumulative venture capital financing of US$74 million,outstanding research and development capabilities, and afirst-in-class lead candidate in clinical trials. Neuromed's drugdevelopment programs across several different types of calciumchannels are designed around validated clinical targets associatedwith large unmet markets including pain, cardiovascular disease andepilepsy. Neuromed is a spin-off biotechnology company from theUniversity of British Columbia founded by Neuromed Chief ScientificOfficer, Dr. Terrance Snutch. For more information on Neuromed pleasevisit www.neuromed.com

About Merck & Co., Inc.

Merck & Co., Inc. is a global research-driven pharmaceuticalcompany dedicated to putting patients first. Established in 1891,Merck currently discovers, develops, manufactures and markets vaccinesand medicines to address unmet medical needs. The Company devotesextensive efforts to increase access to medicines through far-reachingprograms that not only donate Merck medicines but help deliver them tothe people who need them. Merck also publishes unbiased healthinformation as a not-for-profit service. For more information, visitwww.merck.com.

Merck Forward-Looking Statement

This press release contains "forward-looking statements" as thatterm is defined in the Private Securities Litigation Reform Act of1995. These statements are based on management's current expectationsand involve risks and uncertainties, which may cause results to differmaterially from those set forth in the statements. The forward-lookingstatements may include statements regarding product development,product potential or financial performance. No forward-lookingstatement can be guaranteed, and actual results may differ materiallyfrom those projected. Merck undertakes no obligation to publiclyupdate any forward-looking statement, whether as a result of newinformation, future events, or otherwise. Forward-looking statementsin this press release should be evaluated together with the manyuncertainties that affect Merck's business, particularly thosementioned in the cautionary statements in Item 1 of Merck's Form 10-Kfor the year ended Dec. 31, 2005, and in its periodic reports on Form10-Q and Form 8-K, which the company incorporates by reference.