Common use of Scope of Collaboration Clause in Contracts

Scope of Collaboration. During the Collaboration, the parties will (i) perform lead generation activities using ArQule Compounds and multiple ACADIA Targets to identify Active Compounds, (ii) perform lead qualification activities on Reserved Compounds and Reserved Targets to select Committed Compounds and Committed Targets for lead optimization efforts, (iii) perform lead optimization activities on Committed Compound Sets to develop one or more GLP Toxicology Candidates, and (iv) if appropriate, conduct work on one or more GLP Toxicology Candidates to develop IND Candidates, in each case as further described below. The parties may also develop libraries of Targeted Compounds that are focused on a particular target class, and then use the Targeted Compounds for lead generation, as described below. The overall objective of the Collaboration is to discover and develop compounds that demonstrate potential as human therapeutic products, and to sell, license, or otherwise transfer commercial rights to those compounds to third parties.