Biogen to pay $600m for Pfizer-developed schizophrenia therapy

Biogen yesterday announced it has acquired from Pfizer the rights to the investigational PF-04958242 therapy, developed to treat some symptoms of schizophrenia, a condition affecting over 20 million people globally. As part of the agreement, Biogen will make Pfizer an upfront $75m payment, followed by an additional $515m, based on successful completion of precise milestones; the parties have agreed on royalties of approximately 15% on sales.  PF-04958242 is an AMPA receptor, therefore it mediates synaptic transmission. Biogen expects to start a Phase II clinical trial before H2 2018. Investors have reportedly not approved the agreement: indeed, Biogen’s shares have decreased over 2%, while Pfizer’s have decreased 0.44%.

 

(Source: Biogen)