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Sepracor Announces Additional Equity Investment in ACADIA
MARLBOROUGH, Mass.--(BUSINESS WIRE)--Jan. 17, 2006--Sepracor Inc. (Nasdaq: SEPR) today announced that it has completed the second $10 million purchase of ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD) common stock in connection with the collaboration between the two companies formed in January 2005. Sepracor's purchase was made at a price of approximately $12.29 per share, which represented a 25 percent premium to the 30-day trailing average closing price as of the one-year anniversary of the collaboration, and resulted in the issuance of 813,393 shares of ACADIA common stock.
"We are excited with the progress of our collaboration with ACADIA," said Mark H.N. Corrigan, M.D., Executive Vice President, Research and Development of Sepracor. "Their strong CNS discovery expertise and leadership position in the area of muscarinic receptor research may lead to exciting new portfolio candidates for the treatment of CNS disorders."
ACADIA and Sepracor established their research and development collaboration in January 2005 to develop new drug candidates from ACADIA's preclinical muscarinic receptor program for treatment of central nervous system (CNS) disorders. The collaboration includes an investigation of ACADIA's selective m1 agonists for treatment of schizophrenia and other neuropsychiatric disorders. Muscarinic receptors respond to the neurotransmitter acetylcholine. Compounds that selectively act on these receptors may have utility in the treatment of CNS disorders. The collaboration also includes an option for Sepracor to select a preclinical compound from ACADIA's 5-HT2A program for use in combination with LUNESTA(TM) brand eszopiclone, Sepracor's insomnia drug, for sleep-related indications. 5-HT2A antagonists have been shown in clinical studies to affect sleep architecture, resulting in extended periods of slow-wave sleep, which may have a positive effect on sleep quality.
"Sepracor's high-quality research and development team and the complementary nature of our organizations make Sepracor an ideal partner for ACADIA," said Mark R. Brann, Ph.D., President and Chief Scientific Officer of ACADIA. "We are gratified by the confidence that Sepracor has expressed in ACADIA and our collaboration."
In connection with the collaboration, Sepracor has purchased an aggregate of $20 million of ACADIA common stock. Pursuant to the collaboration, Sepracor is also providing ACADIA with research funding over a three-year term, and if certain conditions are met, will be required to pay ACADIA milestone payments as well as royalties on worldwide product sales. Assuming the successful development of a single product in the muscarinic program, Sepracor will be required to pay ACADIA up to $40 million in aggregate payments plus applicable royalties. In addition, should the collaboration successfully develop a combination product with LUNESTA, Sepracor will also be obligated to pay ACADIA up to approximately $35 million in aggregate payments plus applicable royalties. |
