As part of the agreement, Otsuka will gain from Lundbeck co-development and co-commercialization rights to Lu AE58054 in the US, Canada, East Asia including Japan, major European countries and Nordic countries.
Otsuka Pharmaceuticals president and representative director Taro Iwamoto said, "The global collaboration between Otsuka and Lundbeck continues to grow stronger with the addition of Lu AE58054."
Lundbeck will receive from Otsuka an initial payment of $150m on signing and an amount of $675m in regulatory and sales milestones.
Lundbeck president and CEO Ulf Wiinberg said that there is a serious, global, unmet medical need regarding treatments for Alzheimer’s disease in aging populations.
"Together, Otsuka and Lundbeck with their development capabilities, commercial experience and geographical reach will provide a solid foundation in the development of Lu AE58054," Wiinberg added.
The pivotal clinical program with Lu AE58054 is expected to be commenced by the end of 2013.