Pfizer and Taisho propose TS-032 deal

US drug giant Pfizer and Japan's Taisho Pharmaceutical have concluded a letter of intent regarding the development and eventual commercialization of the latter's preclinical candidate TS-032. The letter proposes an agreement under which Taisho would license exclusive rights to the drug, outside Japan, as a schizophrenia treatment.

TS-032 is a novel metabolic glutamate receptor agonist, which Taisho believes may offer new therapeutic options for the treatment of central nervous system disorders. Current research suggests that abnormalities in the transmission of glutamate through the brain may be responsible for some of the symptoms of schizophrenia.

If the deal is signed, Taisho is set to receive an initial $22.0 million from Pfizer, which will also pay a series of milestones based on developmental progress, as well as sales royalties if the product goes on to gain regulatory approval. Further financial terms of the accord were not provided.