Edison enters into strategic alliance with DSP
Deal to develop drugs targeting cellular energy metabolism could be worth up to $4.3bn
US-based Edison Pharmaceuticals has entered into a strategic alliance valued at up to US$4.295bn with Dainippon Sumitomo Pharma (DSP), of Japan, for the development of drugs targeting cellular energy metabolism.
Under the terms of the agreement, DSP would gain select development and commercialisation rights in Japan and North America to discover drugs jointly in exchange for $10m upfront and a $40m payment in research and development support.
Edison has two main drug candidates that modify redox control: EPI-743 and a next generation compound, EPI-589. These two molecules and others in Edison's preclinical development are the subject of the Dainippon deal.
Dainippon has termed the Edison research an 'untapped reservoir of new drug targets, especially for high energy consuming organs such as the brain.' In addition, DSP is to fully fund the development of 10 new jointly discovered drugs through IND (investigative new drug) filing and broaden its rights to EPI-589, currently in phase Ib, to include North America.
In exchange, Edison would be eligible to receive between $30m and $105m per indication associated with successful development of EPI-589 in North America; between $10m and $30m per indication in development milestones associated with successful development of jointly discovered compounds in Japan and North America; up to $3.86bn in commercial milestone payments for jointly discovered compounds and EPI-589 in total; and double digit royalties on commercial sales.