Bs Reporter / Chennai September 30, 2008, 0:08 ISTOrchid Chemicals and Pharmaceuticals today said that it has entered into an arrangement with US drug maker Merck & Co for the discovery and development of novel anti-infective drugs, which have a revenue potential of over $100 million.While the deal has been signed by the two parties with an undisclosed upfront payment from Merck to Orchid, the flow of money to Orchid would depend on milestones that would be achieved over the next five years, Orchid Chemicals Managing Director K Ragavendra Rao said.The arrangement is such that at the end of the drug discovery cycle, Orchid would hold the global patent for the molecules with an exclusive licencing arrangement with Merck for commercialisation of the drug. Orchid would manufacture the drugs, while Merck would market it across the world. The potential market for the drugs yet to be discovered was estimated at $1 billion annually.Orchid Chemicals