Updated on 4 February 2014
Edison Pharma, DSP to co-develop cellular metablosim drug
Singapore: US-based Edison Pharmaceuticals has entered into a strategic alliance valued up to $4.295 billion with Japan's Dainippon Sumitomo Pharma (DSP) for the development of drugs targeting cellular energy metabolism.
Under the terms of the agreement, DSP will gain select development and commercialization rights in Japan and North America to jointly discovered drugs in exchange for $10 million upfront and $40 million payment in R&D support. In addition, DSP will fully fund the development of 10 new jointly discovered drugs through IND filing and broaden its rights to EPI-589, currently in phase 1B, to include North America.
In exchange, Edison will be eligible to receive in total between $30 million and $105 million per indication associated with successful development of EPI-589 in North America; between $10 million and $30 million per indication in development milestones associated with successful development of jointly discovered compounds in Japan and North America; up to $3.86 billion in commercial milestone payments for jointly discovered compounds and EPI-589 in total; and double-digit royalties on commercial sales.
DSP will also invest $50 million in Edison through a preferred stock purchase agreement. At the discretion of Edison, DSP shall invest an additional $50 million in the period between the first and fifth anniversaries of the initial equity closing.
Building on the March 2013 Edison/DSP collaboration agreement, the primary clinical focus of the partnership is the adult central nervous system. Under the terms of the expanded alliance agreement, DSP will gain access to three jointly discovered compounds and fully fund their development in Japan and North America. Edison will retain rights to these compounds outside of Japan and North America. Edison will have worldwide rights to up to seven jointly discovered compounds, which DSP will fund through IND filing. In addition, DSP will broaden its rights to EPI-589 to include North America. Edison will retain 100 percent ownership of its drug EPI-743, and it will continue to direct all research, clinical development, and commercial development outside of Japan.