Biogen has formed an option agreement with TMS Co., a Tokyo-headquartered clinical-stage biopharmaceutical company, to acquire TMS’ investigational Phase II drug for post-stroke treatment as well as backup compounds in a deal worth up to $357 million.

The agreement includes an upfront payment of $4 million and an additional $18-million payment if Biogen exercises its option, with up to $335 million in potential development and commercialization milestones as well as tiered royalties.

The Phase II drug is a plasminogen activator with a mechanism of action associated with breaking down blood clots and is believed to inhibit local inflammation at the site of thrombosis, according to Biogen. The drug is a small molecule that has previously demonstrated an acceptable safety profile in a Phase I study, according to the company. It is currently being evaluated in a double-blind, placebo-controlled Phase II study in Japan.

Source: Biogen