Lundbeck and Otsuka , both amongst the top 50 big biotech companies, announced a license and development biopharma partners agreement
. This agreement was signed for the development of Lu AE58054, a selective 5HT6 receptor antagonist, currently in development for the treatment of Alzheimer's disease.
Lundbeck biopharma partners with Otsuka granting Otsuka co-development and co-commercialization rights to Lu AE58054 in the U.S., Canada, East Asia including Japan, major European countries and Nordic countries.
Lundbeck will receive from Otsuka an initial payment of USD 150 million upon signing.
Both companies will share the sales, development, and commercialization costs based on the agreement as a part of this biopharma partners deal.
Lundbeck is also entitled to up to USD 675 million in regulatory and sales milestones.
Additional specific financial terms of the agreement remain undisclosed.
A number of early trials have demonstrated that a 5-HT6-receptor antagonist could offer potential benefits in the treatment of disorders such as Alzheimer's disease. In December 2009 Lundbeck initiated the above described 24 week clinical phase II trial with Lu AE58054 as augmentation therapy in Alzheimer's disease.
For further deal information visit Current Agreements (subscription required)
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