Biovail Licenses Acadia's Late-Stage CNS Disease Drug with an Initial Fee of $30M
Deal is valued at $395 million and allows Biovail to develop the compound in three indications.
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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