Ceregene will receive 50% reimbursement for Phase III development and royalties on sales.
Ceregene and Genzyme entered into a partnership for the development and commercialization of Ceregene’s Phase II candidate, CERE-120, for the treatment of Parkinson’s disease.
Under the terms of the agreement, Genzyme will pay Ceregene $25 million upfront in exchange for certain partnership-related expenses. Ceregene also is entitled to development-related milestone payments of up to $125 million and 50% reimbursement of the worldwide Phase III development costs.
Genzyme will gain marketing rights in all areas outside the U.S. and Canada and will pay Ceregene tiered sales royalties. Ceregene thus retains exclusive rights in the U.S. and Canada.
“The resources provided by our new partnership with Genzyme, together with the greater than $27-million initial closing of our Series C financing, provides the funding we currently need to advance CERE-120 toward commercialization,” points out Jeffrey M. Ostrove, Ph.D., president and CEO of Ceregene.