Merck Pours $17M Into Physicians Interactive’s Web Tools for Docs

Marlborough, MA-based Physicians Interactive Holdings announced today that it has formed a deal with Merck Global Health Innovation Fund, a unit of the Whitehouse Station, NJ-based drug giant. Merck (NYSE: [[ticker:MRK]]) has pledged $8.5 million up front and another $8.5 million in milestone payments to Physicians Interactive, which was founded in 2008 and makes a range of mobile and Web-based tools for healthcare professionals and life sciences companies.

The company will use the money to further the development of four product lines: digital marketing tools, data analytics, online platforms for selling drug samples, and mobile products such as MedAlert—a service that sends news, research updates, and drug information to doctors’ cell phones. Donato Tramuto, CEO of Physicians Interactive, says the funding will also help the company explore new market opportunities.

This marks the second large financing of a Boston-area company by Merck in the last month. In December, Merck led a $10 million funding of Cambridge, MA-based HIV diagnostics developer Daktari. Merck’s $250 million Global Health Innovation Fund was set up in 2010 to fund startups pursuing several health-related endeavors, including health informatics.

Author: Arlene Weintraub

Arlene is an award-winning journalist specializing in life sciences and technology. She was previously a senior health writer based out of the New York City headquarters of BusinessWeek, where she wrote hundreds of articles that explored both the science and business of health. Her freelance pieces have been published in USA Today, US News & World Report, Technology Review, and other media outlets. Arlene has won awards from the New York Press Club, the Association of Health Care Journalists, the Foundation for Biomedical Research, and the American Society of Business Publication Editors. Her book about the anti-aging industry, Selling the Fountain of Youth, was published by Basic Books in September 2010.