Denmark's NeuroSearch has snared a development pact with J&J's Janssen Pharmaceutica that comes with about $46 million in guaranteed payments. Under the deal, NeuroSearch will help advance and commercialize new drugs for the central nervous system.
"For each product successfully developed and commercialized under the alliance, NeuroSearch will be entitled to milestone payments of up to €213 million... plus double-digit royalties on global sales," the company said. NeuroSearch gets €17 million to cover R&D costs and an upfront fee and €15 million more in equity. Janssen gains various licensing rights to the compounds. The pact will run for three years and Janssen has an option on extending their work by another two years.
"We believe the agreement will significantly boost our pipeline of products representing a substantial value potential for NeuroSearch," Chief Executive Flemming Pedersen said.
- check out the NeuroSearch release
- read the AFX report