Takeda and Neurocrine Biosciences, a San Diego, California-based pharmaceutical company developing small molecules for neurological and endocrine-related disorders, have entered into a strategic collaboration, in a deal worth up to $2.015 billion, to develop and commercialize compounds in Takeda’s early-to-mid-stage psychiatry pipeline.

Takeda has granted an exclusive license to Neurocrine Biosciences for seven pipeline programs, which includes three clinical-stage assets for schizophrenia, treatment-resistant depression, and anhedonia (the inability to feel pleasure).

Under the agreement, Neurocrine Biosciences will be responsible for developing and commercializing all pipeline compounds included in the collaboration. Takeda will receive a total of $120 million in upfront cash. Additionally, Takeda will be entitled to development milestones of up to $495 million, commercial milestones of up to $1.4 billion and up to double-digit royalties on net sales.

At certain development events, Takeda may elect to opt in or out of a 50:50 profit share on all clinical programs on an asset-by-asset basis. For any asset in which Takeda is participating in a 50:50 profit share arrangement, Takeda will not be eligible to receive development or commercial milestones.

Source: Takeda and Neurocrine Biosciences