Neuphoria Therapeutics Inc (Nasdaq:NEUP), a late-stage biotechnology developing treatments for neuropsychiatric disorders, said on Wednesday that it will receive a USD15m milestone payment from US pharmaceutical company Merck & Co Inc (NYSE:MRK), known as MSD outside the US and Canada, following the initiation of a Phase 2 clinical trial for MK-1167 in Alzheimer's disease.

The trial, evaluating the safety and efficacy of MK-1167 as an α7 nicotinic acetylcholine receptor positive allosteric modulator, is the second milestone achieved in the partnership.

Neuphoria's collaboration with Merck focuses on developing treatments for neuropsychiatric disorders, with the company eligible for up to USD450m in additional milestone payments. The agreement also includes royalties on net sales of any licensed products.

This payment reflects the progress of MK-1167 in advancing towards potential therapeutic use in Alzheimer's disease dementia.