Biogen to Buy Stake in Denali for $465 Million as Part of Agreement to Develop Parkinson's Disease Treatment
August 06 2020 - 9:17AM
Dow Jones News
By Dave Sebastian
Biogen Inc. is buying $465 million of Denali Therapeutics Inc.'s
stock, amounting to 11.2% of Denali's outstanding shares, as part
of an agreement to develop and sell Denali's Parkinson's disease
treatment, the companies said.
Biogen is purchasing the newly issued shares at $34.94 apiece,
the companies said Thursday. Biogen will pay up to $1.125 billion
more if Denali's LRRK2 program, which stands for small molecule
inhibitors of leucine-rich repeat kinase 2, hits certain
milestones, they said.
The two companies will develop and sell the treatment in the
U.S. and China, while Biogen will sell the product in other
markets, they said. The drug is set to start late-stage clinical
studies in 2021.
Biogen will also make an upfront payment of $560 million to
Denali, they said. The companies said Biogen will shoulder 60% of
the development's costs. Biogen will take half of the profits and
losses of the drug's commercialization in the U.S. and 60% in
China, while it will be responsible for the commercialization
outside the U.S. and China, paying Denali tiered royalties, the
companies said.
On top of the LRRK2 program, Biogen will also have exclusive
rights to license two preclinical programs from Denali's
transport-vehicle technology that aims to deliver large therapeutic
molecules such as antibodies and enzymes across the blood-brain
barrier, as well as a second program using the technology, they
said.
The collaboration entails Biogen's right of first negotiation
for two additional programs, the companies said.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
August 06, 2020 09:02 ET (13:02 GMT)
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