Updated on 3 September 2015
The market for Alzheimer's drugs stood at $4.9 billion in 2013 and is expected to reach $13.3 billion by 2023, according to GlobalData
Singapore: Swiss drug giant Novartis has announced agreemnet with biotech firm Amgen to develop a drug that could slow or prevent Alzheimer's disease. The collaboration aims to combine efforts and develop drugs that attack BACE, an enzyme that produces clusters of proteins called plaques, believed to cause the brain disorder.
As per the deal, Amgen will develop the product pipeline while Novartis will share the risk and rewards. Novartis said Amgen would pay an upfront fee, followed by milestone payments, for the right to co-develop Novartis's Alzheimer's pipeline. It said Amgen also would pay the majority of research-and-development costs for the program "for an agreed-upon period," after which the pair would split costs and profit equally.
BACE inhibitors are the latest hope in the fight against Alzheimer's, and both companies have potential candidates under development. The partnership with Amgen also provides the Swiss giant commercial rights outside the United States, Canada and Japan for migraine drugs that Amgen is testing in clinical trials. Novartis would pay Amgen double-digit royalties on sales of the drugs.
An estimated 5.3 million Americans suffer from the disease, according to the Alzheimer's Association, a nonprofit organization. Current treatments can help manage symptoms, but there is no cure. The market for Alzheimer's drugs stood at $4.9 billion in 2013 and is expected to reach $13.3 billion by 2023, according to GlobalData, a research and consulting firm.