Allergan plc (NYSE: AGN) didn’t let any grass grow under its feet once the breakup with Pfizer Inc. (NYSE: PFE) was official, at 6:45 am ET on April 6th. At 7:30 pm ET the same day, Allergan announced it will partner with Heptares Therapeutics, a wholly owned subisidiary of Sosei Group Corporation (TSE: 4565), to get the exclusive global rights to a broad portfolio of drug candidates targeting major neurological disorders, including Alzheimer’s disease.
Heptares receives $125 million upfront, and is eligible to receive contingent milestone payments of up to approximately $665 million associated with the successful Phase 1, 2 and 3 clinical development and laund of the first three licensed compounds, and up to another $2.5 billion associated with achieving certain annual sales thresholds for several years after their launch.
And don’t forget the royalties. Heptares could receive up to double-digit tiered royalties on net sales of all products resulting from the deal. Allergan will throw in another $50 million for an R&D program the two will conduct jointly through Phase 2 trials. And it will be responsible for developing, manufacturing and commercializing any licensed compounds that make it to Phase 2b.