MicroDose's DPI system has already attracted interest from several major pharmaceutical firms, including Switzerland's Novartis.
It is a handheld, low-cost, breath-activated device that utilizes piezo electronics to deliver compounds, and is suitable for both small or large molecule therapeutics and for local and systemic applications.
The administration of pharmaceuticals through the respiratory tract is one of the most established methods of drug delivery.
The large surface area and associated blood supply make the lungs an ideal means of rapidly disseminating medications.
At present, conditions such as asthma and chronic obstructive pulmonary disease are routinely treated using aerosolised inhalable medications, as opposed to the many injectable treatments that are also available.
While pressurised aerosol-based inhalation systems currently dominate the market, they are not without problems.
For example, the required level of patient hand-lung coordination and reliance on environmentally damaging CFC propellants, are major drawbacks.
DPI technology was initially developed in an effort to overcome some of these difficulties.
One of the first such products, the Spinhaler, was introduced by UK pharmaceutical firm Fisons in the early 1970s.
Its breath-controlled delivery mechanism overcame the co-ordination difficulties associated with propellant-based systems, and established DPI as a viable administration option.
Since then, the technique has been examined in the delivery of medications for diseases ranging from bronchitis to diabetes, with varying degrees of success.
Under the terms of the accord the announced accord, Merck has agreed to provide funding for the development and commercialisation of products that employ MicroDose's DPI technology.
The deal stipulates that MicroDose receives an initial upfront payment as well as milestone payments totalling $32m. MicroDose is also entitled to royalties based on revenues generated by products covered by the collaboration.
Scott Fleming, senior vice president, marketing, of MicroDose, said: " This agreement to bring innovative inhalation products to market is a positive milestone in the continued growth of MicroDose and represents further validation of our DPI technology. " Soren BoChristiansen, general manager of Merck's bone, respiratory, immunology and endocrinology franchises, echoed these thoughts.
He commented that: " through this agreement Merck has gained access to a novel delivery technology that has the potential to facilitate the administration of and ensure patient compliance with drug treatments targeting the lungs ."