Astellas pays CoMentis $740M for products

Japanese drug major Astellas, through its US subsidiary, has entered into an exclusive worldwide collaboration agreement to develop and commercialize products from CoMentis' beta-secretase inhibitor program, including its lead candidate compound CTS-21166, an orally bioavailable, small-molecule beta-secretase inhibitor which is being developed as a disease-modifying treatment for Alzheimer's disease. The accord also includes a research collaboration to develop additional beta-secretase inhibitors, the Tokyo-headquartered firm notes.

Under the terms of the deal, USA-based CoMentis will receive an upfront payment of $80.0 million and an equity investment of $20.0 million. The company also has the opportunity to receive up to $660.0 million in development milestones and may also receive performance-based commercialization milestones. In addition, it has the right to receive development milestones for next-generation beta-secretase inhibitors discovered under the terms of the research collaboration. Astellas will fund 100% of the pre-Phase III global development costs and CoMentis will share the Phase III development costs. Astellas has exclusivity to worldwide commercialization while CoMentis retains the right to co-promote in the USA, where profit will be shared. The latter will receive royalties on sales outside America.

Commenting on the accord, Scott Harkonen, chief executive of the US firm, said that "CoMentis' beta-secretase inhibitors have the potential to become first-in-class disease modifying therapeutic agents and we believe that Astellas has the expertise and commitment necessary to develop and commercialize these compounds. This licensing agreement will allow CoMentis to benefit through significant up-front licensing fees and milestones, while retaining substantial economic participation in the commercialization of beta-secretase inhibitors."