Otsuka Pharmaceutical Co., Ltd. and H. Lundbeck A/S have entered into a long-term agreement for the development and commercialization of as many as five innovative psychiatric and neuroscience products worldwide. The agreement covers early and late stage compounds in development. The two late stage compounds are from Otsuka: aripiprazole depot formulation and OPC-34712. Otsuka has rights to enter into co-development, and co-promotion following approval, of as many as three compounds after Phase IIb trials.

Lundbeck will make an upfront payment of $200 million and Otsuka will in total receive as much as approximately $1.4 billion with development and regulatory milestones, and an additional $1.8 billion in sales milestones. Both companies will share the sales, development, and commercialization costs.

For aripiprazole depot formulation, Lundbeck will receive 50% of sales in Europe and Canada and 20% of sales in the U.S. For OPC-34712, Lundbeck will receive 50% of sales in Europe and Canada and 45% of sales in the U.S. from Otsuka. For both products, Otsuka holds the rights in many of the Asian countries including Japan, as well as Turkey and Egypt. For the remaining markets in the Lundbeck territories, Lundbeck will market the compound and Otsuka will supply the bulk product at a price of agreed percentage of the sales. In co-commercialization countries, the companies will share sales efforts and costs in accordance with the territory split.