Lundbeck & Otsuka Enter Long-Term CNS Agreement, Deal Has $1.8-Billion Potential
Otsuka Pharmaceutical Co., Ltd. and H. Lundbeck A/S recently announced they have entered into a long-term agreement for the development and commercialization of up to five innovative psychiatric and neuroscience products worldwide. The agreement covers up to five early and late-stage compounds in development. The two late-stage compounds are from Otsuka: aripiprazole depot formulation and OPC-34712. Otsuka receives the rights to enter into co-development, and eventual co-promotion following approval, of up to three compounds after Phase IIb clinical trials.
The alliance is a sales and cost share agreement. Under the terms of the agreement, Lundbeck will make an up-front payment upon signing of $200 million. Otsuka will in total receive up to approximately $1.4 billion from Lundbeck as up-front payment and development and regulatory milestone payments. With the addition of sales milestones in connection, Lundbeck will pay up to approximately $1.8 billion to Otsuka. Both companies will share the sales and development and commercialization costs based on the agreement.
For aripiprazole depot formulation, Lundbeck will receive 50% of net sales in Europe (EU5 and the 4 Nordic countries) and
For OPC-34712, Lundbeck will receive 50% of net sales in Europe (EU5 and the 4 Nordic countries) and
In co-commercialization countries, the parties will share sales efforts and costs in accordance with the territory split. In the
Otsuka brings a strong presence in the North American and Asian CNS markets, and Lundbeck complements Otsuka’s position with a strong presence in
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