NeuroSearch signs agreement with Janssen Pharmaceutica

NeuroSearch A/S has entered into a collaboration with Janssen Pharmaceutica N.V., to discover, develop, and commercialize new medicines to treat various central nervous system diseases based on the companies' joint expertise in the field of neuroscience. NeuroSearch is a Denmark-based biopharmaceutical company focused on central nervous system disorders, while Janssen is a Belgium-based pharmaceutical company and a subsidiary of Johnson & Johnson.

Initially, the agreement would run for three years with an option to Janssen to extend the collaboration with up to two years against additional funding to NeuroSearch.

Under the terms of the agreement, NeuroSearch would be eligible to receive a total of EUR32 million from Janssen, of which EUR17 million would be as upfront payment and research funding and EUR 15 million as an equity investment in NeuroSearch. Upon signing of the agreement, NeuroSearch would receive EUR5 million as an upfront fee with EUR12 million in research funding for the three years to be paid in 2010 and 2011.

Also upon signing, Johnson & Johnson Development Corporation (JJDC) would subscribe for EUR10 million of new NeuroSearch shares and grant NeuroSearch an option until and including April 30, 2010 to sell an additional number of new shares to JJDC worth EUR 5 million.

As per the agreement, NeuroSearch would be responsible for the drug discovery programmes as well as for the early development of the drug candidates stemming from the collaboration. Janssen would have various options to exercise license rights to the individual compounds covered by the agreement and related intellectual property. Upon exercise of license options, Janssen would be responsible for and finance all subsequent development and commercialization activities. For each product, successfully developed and commercialized under the alliance, NeuroSearch would be entitled to milestone payments of up to EUR213 million plus double-digit royalties on global sales.

Deal Type    Partnership
Sub-Category Research and discovery,Development,Commercialization
Deal Status  Announced: 2009-08-17

Deal Participants

Partner 1 (Company) NeuroSearch A/S
Partner 2 (Company) Janssen Pharmaceutica N.V.
Partner 3 (Company) Johnson & Johnson

Related terms: belgium, denmark, equity, exercise, finance, investment, nervous system, partnership, pharmaceuticals, property, research, sales