H. Lundbeck and Otsuka Pharmaceutical have entered a license and development agreement for Lu AE58054, a selective 5HT6 receptor antagonist in Phase III development for the treatment of Alzheimer's disease. Lundbeck will grant Otsuka co-development and co-commercialization rights to Lu AE58054 in the U.S., Canada, East Asia, and major European and Nordic countries.
Lundbeck will receive an initial payment of $150 million and both companies will share the sales, development, and commercialization costs. Lundbeck is also entitled to as much as $675 million in regulatory and sales milestones.
Taro Iwamoto, president and representative director of Otsuka Pharmaceutical, said, "The global collaboration between Otsuka and Lundbeck continues to grow stronger with the addition of Lu AE58054. Not only does the product further enhance the synergy between the companies as we work together to bring to the market solutions for better health, Lu AE58054 is a potentially promising development in a very difficult disease area."
Ulf Wiinberg, president and chief executive officer of Lundbeck, said, "There is a serious, global, unmet medical need regarding treatments for Alzheimer's disease in aging populations. Together, Otsuka and Lundbeck with their development capabilities, commercial experience and geographical reach will provide a solid foundation in the development of Lu AE58054."