Neurocrine Biosciences and Takeda Pharmaceutical Co. entered a strategic collaboration to develop and commercialize compounds in Takeda’s early-to-mid-stage psychiatry pipeline. Neurocrine was granted an exclusive license to seven pipeline programs, including three clinical stage assets for schizophrenia, treatment-resistant depression and anhedonia.

Neurocrine will be responsible for developing and commercializing all pipeline compounds included in the collaboration. Takeda will receive a total of $120 million upfront and will be entitled to development milestones of as much as $495 million, commercial milestones of up to $1.4 billion and royalties on sales. Takeda may elect to opt in or out of a 50:50 profit share on all clinical programs.

TAK-831 is a potential first-in-class D-Amino Acid Oxidase (DAAO) inhibitor currently in Phase II studies, including the Phase II INTERACT proof-of-concept study in negative symptoms of schizophrenia.

TAK-653 is a potential first-in-class Alpha-Amino-3-Hydroxy-5-Methyl-4-Isoxazole Propionic Acid (AMPA) potentiator and is Phase II study-ready with the potential to be developed for treatment-resistant depression.

TAK-041 is a potential first-in-class G Protein-Coupled Receptor 139 (GPR139) agonist that is Phase II ready with the potential to be developed for the treatment of anhedonia in depression.

The collaboration also includes the rights to four preclinical programs.