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Acorda to Continue to Develop and Commercialize Fampridine-SR in the
U.S.
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Upfront Payment of $110 Million; Potential Deal Value Over $500 Million
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Acorda to Host Conference Call at 8:30 a.m. Eastern Time Today
Biogen Idec (NASDAQ:BIIB)
and Acorda Therapeutics, Inc. (NASDAQ:ACOR)
today announced that they have entered into an exclusive collaboration
and license agreement to develop and commercialize Fampridine-SR, a
multiple sclerosis (MS) therapy, in markets outside the United States.
Fampridine-SR is a novel, oral sustained-release compound being
developed to improve walking ability in people with MS. The parties have
also entered into a related supply agreement. The transaction represents
a sublicensing of an existing license agreement between Acorda and Elan
Pharma International Limited, a subsidiary of Elan Corporation plc
(NYSE:ELN).
Under the terms of the agreement, Biogen Idec will commercialize
Fampridine-SR and any aminopyridine products developed under the
agreement in ex-U.S. markets worldwide and will also have responsibility
for regulatory activities and future clinical development of
Fampridine-SR in those markets. Acorda will receive an upfront payment
of $110 million and additional payments of up to $400 million based on
the successful achievement of future regulatory and sales milestones.
Biogen Idec will make tiered, double-digit royalty payments to Acorda on
ex-U.S. sales, and, in addition, the consideration that Biogen Idec pays
for products will reflect all amounts due from Acorda to Elan for ex-US
sales, including royalties owed. The parties can also carry out future
joint development activities under a cost-sharing arrangement.
Elan will continue to manufacture commercial supply of Fampridine-SR,
based on its existing supply agreement with Acorda. Under the existing
agreements with Elan, Acorda will pay Elan seven percent of the upfront
and milestone payments that Acorda receives from Biogen Idec.
“Biogen Idec has outstanding capabilities in commercializing neurology
and oncology products and is known globally for its reputation as an
innovative leader in the field of multiple sclerosis. We are delighted
to be working with them to make Fampridine-SR, if approved, available to
people living with MS in Europe, Canada, Australia and other areas of
the world,” said Ron Cohen, M.D., President and CEO of Acorda. “We
believe that Biogen Idec’s international expertise in MS and neurology
also will help us optimize future development of Fampridine-SR and
maximize its value in markets outside the U.S.”
“We are very pleased to partner with Acorda, a leader in the development
of therapies for spinal cord, MS, and related nervous system disorders,
to help make Fampridine-SR available to MS patients outside of the
United States,” said Jim Mullen, President and CEO of Biogen Idec.
