Message 17037635
Neurosearch,Boehringer Ingelheim In $80M Alzheimer's Deal
DOW JONES NEWSWIRES
LONDON -- Danish biotechnology group NeuroSearch A/S (K.NOS) said Friday that it has secured a deal worth over $80 million with Boehringer Ingelheim GmbH (G.BRI) to develop a drug for Alzheimer's disease.
The drug, known as NS2330, has already been taken into Phase II trials by Neurosearch. Under the deal announced Friday, the two companies will jointly take the drug through further trials, which will be wholly financed by Boehringer Ingelheim.
A drug usually passes through at least three phases of trials involving an increasingly wide range of patients before being submitted to regulatory authorities for marketing approval.
Neurosearch is to receive an upfront payment of $20 million, followed by a further $60 million prior to marketing approval.
Should the drug succeed in making it to the market, Boehringer will retain global marketing rights, excluding those for the Nordic and Baltic countries, which NeuroSearch will retain. NeuroSearch will also receive royalties on Boehringer's sales.
As a result, NeuroSearch expects to post a profit of between DKK10 million and DKK20 million in the year ending Dec. 31, 2001, taking into account spending on other clinical programs, the company said.
The World Health Organisation estimates that more than 29 million people worldwide suffer from dementia, half of whom have Alzheimer's disease. The prevalence of Alzheimer's disease doubles every five years beyond the age of 65, and beyond the age of 85 the prevalence is 20%. |
