German pharmaceutical company Merck is in talks with outside investors about co-investing in a number of clinical trials.

Through this unusual approach, Merck aims to secure more external funding to boost the prospects for new product development. Stefan Oschmann, head of Merck's pharmaceuticals and consumer health division, said he had spoken to potential partners, including private equity groups, about sharing the company's experimental medicine costs.

He has also looked at further "risk-sharing" deals, which finance the success of products such as in-vitro fertility treatments. The moves reflect Oschmann's efforts to restructure Merck's drug division to make it more productive and strengthen the business ahead of potential cost cuts and acquisitions.

Under pressure from research and development cuts and to return cash to investors, drug companies have been looking for new ways to boost production and support their increasingly expensive final-stage clinical trials.

Pharmaceutical companies such as Eli Lilly of the US are using a similar approach to share the development costs, risks and benefits of individual drugs with outside investors.