Under the terms of the agreement, Neurocrine will receive an initial payment of $20 million and an additional $10 million payment upon FDA approval of indiplon. Neurocrine is eligible to receive additional milestone payments associated with the successful development and commercialization of the indiplon immediate release formulation in Japan.
Upon commercialization of indiplon, Neurocrine will receive royalties from Dainippon Sumitomo Pharma (DSP) based on sales in Japan. DSP also has a right to develop and commercialize the modified release formulation of indiplon, which would result in additional milestone payments and royalties to Neurocrine.
Gary Lyons, president and CEO of Neurocrine Biosciences, said: “The economics of this agreement, given the significant milestones and substantial royalty rate, confirm the value of indiplon.”