Pfizer gains rights to Medivation Alzheimer's drug
NEW YORK (Reuters) - Pfizer Inc (PFE.N) is acquiring rights to a promising experimental drug for Alzheimer's disease from Medivation Inc (MDVN.O) for as much as $725 million, sending Medivation shares up nearly 31 percent.
Pfizer, which is seeking to boost its pipeline of experimental drugs, will pay an initial $225 million for rights to the medicine, Dimebon, which is also being developed for Huntington's disease, the companies said on Wednesday.
The world's largest drug maker will pay San Francisco-based Medivation up to $500 million more should Dimebon reach various development and regulatory goals, plus additional undisclosed commercial milestone payments.
Results for Dimebon were presented at a prominent Alzheimer's conference in July, when the drug showed it kept symptoms of the brain-wasting disease at bay for 18 months.
No cure exists for Alzheimer's disease, the most common form of dementia, and current drugs just delay symptoms somewhat.
Pfizer will collaborate on the Phase 3 program in Alzheimer's disease, Huntington's disease development, and regulatory filings in the United States.
The New York-based company will assume 60 percent of U.S. development and commercialization expenses, and receive 60 percent of U.S. profits. Medivation will co-promote Dimebon to specialty physicians in the United States, should the drug reach the market.
Pfizer will have responsibility for the drug outside the United States and will pay Medivation royalties on sales.
Medivation started enrolling patients in June for a 525-patient Phase 3 trial for Alzheimer's disease.
In July, Medivation said a mid-stage trial showed Dimebon significantly improved cognitive function in patients with Huntington's disease, a condition in which the degeneration of brain cells causes uncontrolled movement and loss of intellectual function.
Medivation shares rose to $34 in premarket trading from Tuesday's close of $26.03. Pfizer rose 8 cents to $19.25.
(Reporting by Lewis Krauskopf; Editing by Steve Orlofsky and Lisa Von Ahn)
