UCB S.A. (UCBJF) and Neuropore Therapies Inc. announced the signing of a worldwide collaboration agreement for the development and commercialization of candidates that are designed to slow the progression of Parkinson’s disease and related disorders.
The agreement includes the development of Neuropore’s NPT200-11, which is currently in preclinical development. The candidate is expected to enter phase I development in 2015.
Terms of the Deal
UCB will be entitled to receive the worldwide exclusive license to develop and commercialize NPT200-11 for all indications. As per the deal, UCB and Neuropore will jointly complete all non-clinical studies as well as the first phase I study on the candidate. Thereafter, UCB will lead the clinical development process, regulatory activities and commercialization for NPT200-11. UCB will pay an initial upfront payment of US$20 million to Neuropore. The company will also be entitled to receive potential development-, regulatory- and sales-based milestones payments of up to $460 million apart from royalties on net sales of the product (if approved).
Benefits to Neuropore
Neuropore, a development-stage company, has gained a strong partner in UCB. UCB is one of the leading companies in the field of central nervous system diseases. The company’s commercial expertise should strengthen Neuropore’s position in the market for treatments for neurological diseases including Parkinson’s disease. According to the press release issued by UCB, Parkinson’s disease holds the second position after Alzheimer’s disease in the list of the most common neurodegenerative disorders. Approximately, 7 million – 10 million patients suffer from this disease across the world.
Moreover, the collaboration with UCB should benefit Neuropore financially and help accelerate the development of its pipeline.
UCB carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector are Biodel Inc. (BIOD) and Endo International plc (ENDP) and Lannett Company, Inc. (LCI). While Biodel and Endo carry a Zacks Rank #1 (Strong Buy), Lannett holds a Zacks Rank #2 (Buy).
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