Research Collaboration For Allergan and ACADIA

US companies Allergan Inc and ACADIA Pharmaceuticals (formerly ReceptorTechnologies) are to work jointly and exclusively on discovery efforts on five potential drug targets, including the prostanoid and alpha adrenergic receptors.

Under the terms of their deal, Allergan will have exclusive development and commercialization rights to all therapeutic uses, with the exception that ACADIA will retain development rights to at least one therapeutic indication for each target. The companies will also identify novel receptors in tissues associated with areas of therapeutic interest to Allergan.

$6 Million Equity Investment By Allergan As part of the arrangement, Allergan will make a $6 million equity investment in ACADIA, resulting in a 12.5% ownership position on a fully diluted basis. ACADIA will receive research funding for three years, as well as milestone payments up to $12.5 million for the first product developed for each receptor target. Additionally, Allergan will pay ACADIA royalties on product sales. if and when these arise.