NeuroSearch Signs Research Agreement With Janssen

NeuroSearch has signed a drug discovery and drug development agreement with Janssen Pharmaceutica (Janssen).

As per the agreement, NeuroSearch and Janssen will collaborate to discover, develop and commercialise new medicines to treat various central nervous system (CNS) diseases, based on the companies’ joint expertises in the field of neuroscience.

The agreement, for three years, gives Janssen an option to extend the alliance with up to two years against additional funding to NeuroSearch.

Under the terms of the agreement, NeuroSearch is eligible to receive a total of E32m from Janssen, of which E17m will be as upfront payment and research funding and E15m as an equity investment in NeuroSearch.

Upon signing of the agreement, NeuroSearch will receive E5m as upfront payment with E12m in research funding for the three years to be paid in 2010 and 2011.

Also upon signing, Johnson & Johnson Development Corporation (JJDC) will subscribe for E10m of new NeuroSearch shares and grant NeuroSearch an option until and including 30 April 2010, to sell an additional number of new shares to JJDC worth E5m.

Upon exercise of license options, Janssen will be responsible for and finance all subsequent development and commercialisation activities. For each product, successfully developed and commercialised under the alliance, NeuroSearch will be entitled to milestone payments of up to E213m and royalties on global sales.