Lundbeck places €10m in Biotie
10.09.2012 - The Scandinavian duo Lundbeck and Biotie agreed on a deal that includes a €10m equity investment and amended commercialisation rights.
Danish H. Lundbeck A/S from Copenhagen trusts in Biotie Therapies Corp. from Turku (Finland). First clinical data from pivotal Phase III studies with Selincro (nalmefene) were presented earlier this year. Despite being not overly compelling to the public – and a data update being overdue – the results seem to be convincing enough for the two collaborating partners to strengthen their ties.
On 7 September, Lundbeck invested €10m in Biotie by subscribing for 18,604,651 shares (€0.5375 per share). This represents an 4.6% equity stake after the share issue as the share capital of Biotie is now increasing to €176m. The investment comes with an amended license agreement. Biotie is now eligible for up to €89m in upfront and milestone payments which includes now a €5m sales milestone for Japan in comparison with the old agreement. The deal also includes a reduction in royalties on the sales on markets outside the EU, the EFTA and the US, which puts Lundbeck in the position to launch Selincro at a more competitive price.
Lundbeck holds the worldwide development and commercialisation rights to Selincro. The marketing authorisation for the EU was already filed in December 2011. A decision by the EMA is expected this year. Selincro is a small molecule opioid receptor antagonist that inhibits the reward pathway in the brain that reinforces the desire and craving for alcohol and other addictive substances. As a result, Selincro targets a novel principle in the treatment of alcohol dependence by removing a person’s desire to drink.