DOW JONES NEWSWIRES
Biogen Idec Inc. (BIIB) and Acorda Therapeutics Inc. (ACOR) reached an exclusive collaboration and license agreement to develop and commercialize Acorda's multiple-sclerosis therapy outside the U.S.
Acorda also plans to continue efforts to commercialize Fampridine-SR domestically.
The announcement comes a day after Biogen and Belgian biopharmaceutical company UCB SA (UCB.BT) discontinued trials of a treatment for a relapsing form of the disease. That setback for Biogen followed its disclosure last week of a debilitating brain infection in patients taking its Tysabri multiple-sclerosis medicine. That incident marked the 13th case of the infection in a Tysabri patient. Three have died.
Acorda will receive an upfront payment of $110 million and additional payments of up to $400 million from Biogen under the deal, depending on whether it achieves regulatory approvals and sales targets. Biogen also will make royalty payments to reflect amounts Acorda will owe to Elan Corp. (ELN). Acorda's deal with Biogen represents a sublicense of Acorda's agreement with Elan, which makes Fampridine-SR.
Biogen will develop and commercialize Fampridine-SR and related products, an oral long-lasting drug being developed to improve walking ability of MS patients.
In the U.S., the drug faces regulatory hurdles and worries about side effects, though most analysts and MS advocates have been hopeful the drug will be approved, saying the improvement in quality of life for two-thirds of users who have difficulty walking outweighs concerns. Approval from the Food and Drug Administration could come as soon as October.
The European Medicines Agency previously notified Acorda that it can proceed with its marketing authorization application.
Acorda shares closed Tuesday at $28.19 and Biogen finished at $45.15. Neither traded premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; tess.stynes@dowjones.com