Alkermes has signed an agreement to acquire biopharmaceutical company Rodin Therapeutics in a deal valued at around $950m.
As per the terms of the deal, Rodin’s security holders will secure an upfront cash payment of $100m upon completion of the deal.
Rodin is also eligible to secure future payments of up to $850m based on the achievement of certain specified clinical and regulatory milestones, as well as attainment of certain sales thresholds related to its development candidates.
Rodin is involved in the development of first-in-class, orally-available, brain-permeable therapeutics for synaptopathies by designing molecules that target specific histone deacetylase (HDAC) complexes.
Synaptic dysfunction is a pathological feature in multiple neurodegenerative and neuropsychiatric diseases, and synaptic loss may result in cognitive decline.
The acquisition of Rodin will allow Alkerme to expand its central nervous system (CNS) development efforts into a range of neurodegenerative disorders.
Rodin Therapeutics CEO Adam Rosenberg said: “Rodin’s targeted approach to strengthening synaptic integrity is backed by a robust translational strategy and may have potential across multiple diseases which are characterized by impaired neuronal and synaptic function.”
Alkermes plans to advance investigational new drug (IND)-enabling activities for major preclinical assets in the Rodin development candidate portfolio.
The company also intends to continue Rodin’s preclinical research programme focused on the subset of frontotemporal dementia patients with an inherited mutation of the progranulin gene (FTD-GRN) and exploratory work in haematological disorders and oncology.
Alkermes CEO Richard Pops said: “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.”
Alkermes is involved in the development of advanced medicines for the treatment of CNS and oncology. It has a diversified commercial product portfolio and clinical pipeline of product candidates for diseases such as schizophrenia, depression, addiction, multiple sclerosis, and cancer.