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news.Sepracor has completed a second $10 million purchase of Acadia Pharmaceuticals' common stock in connection with a collaboration between the two companies for the development of treatments for central nervous system disorders.
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The collaboration includes an investigation of Acadia’s selective m1 agonists for treatment of schizophrenia and other neuropsychiatric disorders. Muscarinic receptors respond to the neurotransmitter acetylcholine and compounds that selectively act on these receptors may have utility in the treatment of CNS disorders.
Sepracor has so far purchased an aggregate of $20 million of Acadia common stock, and is also providing Acadia with research funding over a three-year term. In addition, if certain conditions are met, Sepracor will be required to pay Acadia milestone payments as well as royalties on worldwide product sales.
Sepracor will be required to pay Acadia up to $40 million if a product is successfully developed in the collaboration. Furthermore, should the collaboration successfully develop a combination product with Sepracor’s sleep aid Lunesta, Sepracor will also be obligated to pay Acadia up to approximately $35 million in aggregate payments plus applicable royalties.
“Their strong CNS discovery expertise and leadership position in the area of muscarinic receptor research may lead to exciting new portfolio candidates for the treatment of CNS disorders,” said Dr Mark Corrigan, executive vice president of R&D at Sepracor.