Galenea Extends Research Collaboration With Otsuka

Galenea and Otsuka Pharmaceutical have reported the further extension of their research and development collaboration through 2011. The latest extension increases the collaboration term to seven years and brings the total committed funding to approximately $90m.

The companies have been working together since January 2005 with the goal of discovering and developing therapies for schizophrenia and other central nervous system (CNS) diseases based on the calcineurin pathway. The agreement was previously extended for one year in October 2008.

Galenea and Otsuka have made advances in several projects within the collaboration, including the progression of several molecules to the late lead optimisation stage. Each project represents a therapeutic with a mechanism of action for treating many common symptoms in schizophrenia and related disorders. Galenea intends to deliver a clinical development candidate to Otsuka next year.

Under the terms of agreement, Otsuka will have worldwide rights to develop, manufacture and commercialise development candidates generated during the collaboration. Galenea will receive milestone and royalty payments, or alternatively may participate in profit-sharing.

Mark Benjamin, chief executive officer of Galenea, said: “We are thrilled with the continued endorsement of Otsuka and delighted to receive this second extension to our collaboration. Our scientists continue to make progress and, with this additional support from Otsuka, we expect to deliver breakthrough therapies for schizophrenia.”

Taro Iwamoto, president and representative director of Otsuka Pharmaceutical, said: “Through this collaboration with Galenea, we hope to enhance our research in the CNS field by taking advantage of their unconventional point of view and scientific approach. Our goal for this collaboration is the contribution of new therapies to patients in need. These new therapies will add to our CNS portfolio which includes our antipsychotic agent and other compounds in earlier phases of development.”