Biovail Laboratories acquired the U.S. and Canadian rights to develop and market Acadia Pharmaceuticals' pimavanserin tartrate in neurological and psychiatric conditions for $30 million up front. Acadia could earn $365 million in milestons related to development and sales goals.
Pimavanserin tartrate is a selective 5-HT2A inverse agonist currently in a Phase III study for Parkinson's disorder psychosis (PDP). The drug also completed a Phase II trial in Schizophrenia. Acadia will continue to be responsible for the late-stage PDP investigation, while Biovail will fund an Alzheimer's program.
Acadia stands to earn $160 million in milestones related to drug development, regulatory submissions, and approval in Alzheimer's and PDP. If a third indication is added, Biovail could pay up to $45 million in success milestones. Acadia could also receive a further $160 in milestones associated with sales.
Biovail will also make tiered, royalty payments to Acadia on net commercial sales: 15% on annual sales of up to $100 million and 20% on sales greater than $100 million. Biovail will assume all costs associated with the development, manufacturing, and commercialization of pimavanserin in all indications save specified ongoing studies, which Acadia will fund.
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