Alkermes has completed its acquisition of Rodin Therapeutics Inc., a privately held bio-pharmaceutical company.
The transaction builds on Alkermes’ experience in central nervous system (CNS) diseases and expands Alkermes’ CNS development efforts into a wide range of neurodegenerative disorders, said a company press release.
At the closing of the transaction, Alkermes made an upfront cash payment of $100 million (subject to customary adjustments) to Rodin’s former security holders.
Under the terms of the agreement between Alkermes and Rodin, Rodin’s former security holders are eligible to receive future payments of up to $850 million upon achievement by Rodin’s development candidates of certain specified clinical and regulatory milestones, and attainment of certain sales thresholds.
“Building on our broad experience in psychiatry, we believe this transaction will allow us to explore a wide array of neurodegenerative diseases and synaptopathies, which have been areas of significant interest to us as we have advanced our internal pipeline of medicines for CNS disorders,” said Richard Pops, CEO of Alkermes.
“This investment is reflective of our longstanding commitment to bring new and innovative therapeutic options to patients living with chronic CNS diseases where the unmet medical need is high,” Pops added.
Alkermes expects to incur approximately $20 million of incremental Research & Development (R&D) expenses in 2020 related to the advancement of Rodin’s development candidates. Alkermes will provide its complete 2020 financial expectations in February 2020.
Alkermes is a global bio-pharmaceutical company developing innovative medicines for the treatment of central nervous system (CNS) diseases and oncology, according to the release. The company has a diversified commercial product portfolio and a substantial clinical pipeline of product candidates for diseases that include schizophrenia, depression, addiction, multiple sclerosis, and cancer.
Headquartered in Dublin, Ireland, Alkermes has an R&D center in Waltham, Massachusetts, a research and manufacturing facility in Athlone, Ireland, and a manufacturing facility in Wilmington.