By Maria Armental

 

Biogen Inc. and Sage Therapeutics Inc. agreed to jointly develop and commercialize zuranolone (SAGE-217) for major depressive disorder, postpartum depression and other psychiatric disorders and SAGE-324 for essential tremor and other neurological disorders, the companies said Friday.

Under the terms of the agreement, Sage Therapeutics would receive $1.53 billion in cash, including an upfront payment of $875 million, in addition to up to some $1.6 billion in potential milestone payments, profit sharing and royalties.

The two companies would develop and commercialize zuranolone and SAGE-324 in the U.S. jointly and Biogen would receive exclusive license to develop and commercialize zuranolone and SAGE-324 outside of the U.S., excluding rights to zuranolone in Japan, Taiwan and South Korea, the companies said.

"With the recent and pending data outputs for zuranolone and SAGE-324, the timing is right for a collaboration between two like-minded companies committed to patients and driven by a passion for neuroscience and brain health," Sage Therapeutics Chief Operating Officer Mike Cloonan said in a statement.

The transaction is expected to close by the end of January.

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

November 27, 2020 08:07 ET (13:07 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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