Date: 2011-05-16
Type of information: R&D agreement
Compound: CNS medicines
Company: Neurosearch (Denmark) Janssen Pharmaceutica (J&J) (USA)
Therapeutic area: CNS diseases
Type agreement: R&D development commercialisation distribution
Action mechanism:
Disease:
Details: NeuroSearch has reached an agreement with Janssen Pharmaceutica NV to extend the ongoing collaboration until August 2013. The extension will not impact on the total number of NeuroSearch scientists working within the alliance. NeuroSearch and Janssen Pharmaceutica entered into this alliance in August 2009 building on joint expertises in neuroscience drug discovery and development.
Financial terms: Financial terms (total fixed payments, as well as milestones and royalties) remain unchanged. Under the terms of the first agreement, NeuroSearch is eligible to receive a total of € 32 million (DKK 238 million) from Janssen, of which € 17 million (DKK 127 million) will be as upfront payment and research funding and € 15 million (DKK 112 million) as an equity investment in NeuroSearch. Upon signing of the agreement, NeuroSearch will receive € 5 million (DKK 37.2 million) as upfront payment with € 12 million (DKK 89 million) in research funding for the three years to be paid in 2010 and 2011. Johnson & Johnson Development Corporation (JJDC) will also subscribe for € 10 million (DKK 74,4 million) of new NeuroSearch shares. Under the terms of the agreement, NeuroSearch can exercise an option until and including 30 April 2010 to sell an additional number of new shares to JJDC worth € 5 million (DKK 37.2 million). For each product, successfully developed and commercialised under the alliance, NeuroSearch will be entitled to milestone payments of up to € 213 million (DKK 1,586 million) plus double-digit royalties on global sales.
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