Date: 2015-05-11
Type of information: Development agreement
Compound: nelotanserin
Company: Arena Pharmaceuticals (USA - CA) Roivant Sciences (Bermuda - USA - NY)
Therapeutic area: Mental diseases - Neurological diseases
Type agreement: development marketing supply
Action mechanism: 5-HT2A receptor agonist. Nelotanserin is a potent and selective inverse agonist of the 5-HT2A receptor that has been implicated in the pathophysiology underlying psychosis. Nelotanserin was discovered and developed by Arena, and completed Phase 1 trials in healthy volunteers and Phase 2 trials in subjects with insomnia before development was discontinued for that indication.
Disease:
Details: * On May 11, 2015, Arena Pharmaceuticals announced that its subsidiary, Arena Pharmaceuticals GmbH , and Roivant Sciences Ltd. , have entered into a development, marketing and supply Agreement for nelotanserin, Arena's internally discovered inverse agonist of the 5-HT2A receptor. The agreement grants Roivant exclusive worldwide rights to develop and commercialize nelotanserin. Nelotanserin has been studied to date in multiple clinical trials involving over 900 subjects. Roivant intends to initiate additional Phase 2 clinical trials for the treatment of behavioral and neuropsychiatric disturbances, including psychoses, in patients with dementia and other neurological diseases. In addition, Roivant may pursue the development of nelotanserin for other neuropsychiatric disorders. Roivant will be responsible for funding the development and commercialization of nelotanserin.
Financial terms: Under the agreement, Arena will manufacture clinical supply and commercial product to sell to Roivant. Arena will receive a $4.0 million upfront payment and is eligible to receive $41.5 million in regulatory and development milestone payments. Arena is also eligible to receive 15% of net sales of nelotanserin in exchange for the manufacture and supply of finished commercial drug product, and up to a total of $60.0 million in one-time purchase price adjustment payments tied to certain commercial sales milestones.
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