By Maria Armental
Biogen Inc. and Sage Therapeutics Inc. agreed to jointly develop and commercialize zuranolone (SAGE-217) for major depressive disorder, postpartum depression and other psychiatric disorders and SAGE-324 for essential tremor and other neurological disorders, the companies said Friday.
Under the terms of the agreement, Sage Therapeutics would receive $1.53 billion in cash, including an upfront payment of $875 million, in addition to up to some $1.6 billion in potential milestone payments, profit sharing and royalties.
The two companies would develop and commercialize zuranolone and SAGE-324 in the U.S. jointly and Biogen would receive exclusive license to develop and commercialize zuranolone and SAGE-324 outside of the U.S., excluding rights to zuranolone in Japan, Taiwan and South Korea, the companies said.
"With the recent and pending data outputs for zuranolone and SAGE-324, the timing is right for a collaboration between two like-minded companies committed to patients and driven by a passion for neuroscience and brain health," Sage Therapeutics Chief Operating Officer Mike Cloonan said in a statement.
The transaction is expected to close by the end of January.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires