Biogen Inc (NASDAQ:BIIB) has agreed to buy a Phase IIb trial-ready schizophrenia treatment from fellow pharma giant Pfizer Inc (NYSE:PFE), in a deal worth up to US$590mln.
Massachusetts-based Biogen is paying US$75mln upfront for PF-04958242, plus up to a further US$515mln in development and commercialization milestone payments, as well as tiered royalties in the low to mid-teen percentages.
READ: Biogen and AbbVie halt sales of Zinbryta multiple sclerosis drug due to safety concerns
The acquisition marks Biogen’s first foray into neuropsychiatry, which it has called a “strategic emerging growth area”.
“As pioneers in neuroscience, Biogen continues to explore new ways to treat serious diseases where there are few or no options, such as cognitive impairment associated with schizophrenia,” said chief executive Michel Vounatsos.
“Given the significant unmet patient need and Biogen’s ability to apply its scientific expertise in this area, we are enthusiastic to advance development of this asset as we continue to expand our neuroscience pipeline, including in our emerging growth areas such as neuropsychiatry.”
PF-04958242 is an AMPA receptor which helps the central nervous system to send and receive ‘messages’, a process which can be disrupted by neurological and psychiatric diseases such as schizophrenia.
The drug demonstrated an “acceptable” safety profile and treatment in a previous Phase Ib clinical study, and Biogen hopes to kick off a Phase IIb trial in the second half of this year.
Biogen shares were untraded in pre-market at US$286.10.