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Drug Firm Makes City New Home

June 27, 2004 - by Rachel Wimberly, Star-News Correspondent

Merrion Pharmaceuticals Inc., a new player in the $25 billion oral-drug delivery business, recently opened its worldwide headquarters in Wilmington and tapped Michael McKenna as its chief executive officer.

Merrion joins approximately 14 other pharmaceutical-based companies that are currently in the area.

The company's primary investor, Growcorp, as well as its manufacturing and research and development branch, Merrion BioPharma Ltd., are all located in Dublin, Ireland.

Dr. McKenna had a simple explanation as to why the company chose Wilmington for its headquarters.

"It's where we live," he said.

The 'we' is Dr. McKenna and Thomas W. Leonard, Merrion's vice president and chief scientific officer. Their office is located off Racine Drive and they share their space with one other employee, office manager Michelle Miller.

"We'll be that way until we start doing more business," Dr. McKenna said.

For now, Merrion Pharmaceuticals is seeking collaboration and licensing opportunities with pharmaceutical and biotechnology companies for the technology they represent.

Simply put, Merrion makes medicines that are easier for patients to take. For example, one pill would take the place of four, or one pill would take the place of an injection.

In the fall of 2002, Merrion acquired part of Elan Corp.'s portfolio.

"Elan decided to reorganise and divest all of their drug delivery technologies," Mr. McKenna said. "Oral drug delivery is like the Holy Grail. People want to take tablets and pills, not injections."

Elan is also a minor investor in Merrion Pharmaceuticals Inc.

Pharmaceuticals are a $40 billion industry with oral drugs accounting for more than half, he added.

One reason it's such big business is because people often take three or four pills of the same medication a day.

Merrion Pharmaceuticals is introducing new drugs into the marketplace that will require someone to take less medication and have the same affect.

"We're really trying to do two things," Mr. McKenna said. "One is we want to improve convenience for the patient taking their medication and improve pharmaceutical product performance so we can get to once-a-day drugs taken orally."

The company has four products that are in the clinical trial's process and are now available for licensing, he added.

The manufacturing and research and development arm of the company is based in Dublin, Ireland because of definite tax advantages.

Intellectual property developed in Ireland is not subject to royalty taxes in the country.

"It allows you to do a number of things financially," Mr. McKenna said.

Ultimately, Merrion Pharmaceuticals wants to develop its own products.

The possible rewards for patenting a new technology include selling the company as a whole to a big pharmaceutical company, merging with another oral drug delivery company or taking the company public.

Merrion isn't the first start-up venture for Mr. McKenna. He moved to Wilmington as part of the start-up team for L.A.B., which became Pharma Research Corporation and now, Inveresk.

"I'm stoked, this is fun," Mr. McKenna said. "Start-ups are great and you can get really enthusiastic."

Even with the best technology, it takes an enthusiastic team to make a company successful, he said.

"As business development activities expand, we will expand in Wilmington," Mr. McKenna said.

Star-News business desk: 343-2329


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