Takeda Licenses Out Seven Psychiatric Drug Candidates to Neurocrine Biosciences in $2 Billion Strategic Collaboration

On June 16, Takeda and Neurocrine Biosciences announced a strategic collaboration to jointly develop and commercially promote early- to mid-stage investigational new drug candidates within Takeda’s psychiatric drug portfolio. Takeda has exclusively licensed seven of its psychiatric drug assets to Neurocrine Biosciences, including three clinical-stage programs for the treatment of schizophrenia, treatment-resistant depression, and hypoactive sexual desire disorder, respectively.

Under the terms of the agreement, Neurocrine Biosciences is responsible for the development and commercialization of all collaborative projects specified in the agreement. It will pay Takeda an upfront payment of $120 million, development milestones totaling $495 million, and commercial milestones amounting to $1.4 billion. Additionally, Neurocrine Biosciences will pay Takeda double-digit royalties based on the net sales of the products in the future.

During the clinical development of certain projects, Takeda may elect, based on specific milestone events, to enter into a 50:50 profit-sharing collaboration with Neurocrine Biosciences for such projects; however, this election entails that Takeda agrees to waive its rights to development and commercial milestones for the respective project.

The three clinical-stage projects involved in the collaboration between the two parties include:

• TAK-831, a potential first-in-class D-amino acid oxidase (DAAO) inhibitor, has completed multiple Phase I studies and is currently undergoing Phase II studies, including the INTERACT Phase II proof-of-concept study for the treatment of negative symptoms of schizophrenia.
• TAK-653, a potential first-in-class α-amino-3-hydroxy-5-methyl-4-isoxazolepropionic acid (AMPA) receptor potentiator, has completed Phase I studies and is ready to enter Phase II clinical trials, showing promise for the treatment of refractory depression.
• TAK-041, a potential first-in-class G protein-coupled receptor 139 (GPR139) agonist, has completed multiple Phase I studies and is poised to enter Phase II clinical trials, demonstrating potential for the treatment of depression-associated anhedonia.

Note: The original text has been abridged.