Biovail is paying Santhera Pharmaceuticals $8 million up front for North American rights to the Parkinson’s disease candidate fipamezole (JP-1730). Under terms of the deal, Biovail will also pay Santhera an additional $4 million on completion by the latter of its acquisition of Oy Juvantia, which owns fipamezole. Further milestones could add up to $180 million.
Biovail will be responsible for the remaining clinical development programs and associated costs in the U.S. and Canada. A Phase III U.S. trial is scheduled to start in 2011. Santhera will earn $35 million relating to regulatory achievements associated with this Phase III trial and regulatory submissions/approvals. The remaining $145 million will be paid as sales-related goals are met.
Santhera has retained U.S. co-promotion rights and will collaborate with Biovail on the North American development program. Santhera CEO, Klaus Schollmeier, says that the agreement “is consistent with our strategy of partnering larger indications whilst retaining co-promotional rights for our commercial operations in the U.S.”
Fipamezole is an adrenergic alpha-2 receptor antagonist in development for the treatment of dyskinesia in Parkinson’s disease. The deal with Biovail comes just days after Santhera confirmed it was exercising its option to buy Juvantia. Santhera and Juvantia have been collaborating on the development of fipamezole since 2006.