Revised terms call for over $75 million in funding.
Galenea and Otsuka Pharmaceutical will expand the original five-year R&D collaboration covering treatments for central nervous system (CNS) diseases. The firms will partner for an additional year, and total committed funding will go over $75 million.
The two companies have been working together since January 2005 and report that several compounds are in the lead optimization phase. Under the terms of the agreement, Otsuka has the exclusive worldwide rights to develop, manufacture, and commercialize any candidates resulting from the collaboration. Galenea will receive milestone and royalty payments or may participate in profit-sharing. Galenea also retains rights to additional targets and associated compounds as well as any drug screening technologies made during the partnership.
With Otsuka’s support, Galenea also recently completed the construction of chemistry labs at its Cambridge facility, complementing their existing capabilities in neurobiology, electrophysiology, high-throughput screening, and behavioral pharmacology.
The compounds being developed have the potential to treat impairments in memory and cognition common in schizophrenia and related disorders, according to the companies.