Biogen strikes $600m deal with Pfizer for promising schizophrenia drug

Biogen, a leading US biotechnology firm, has reached a significant agreement to acquire Pfizer‘s neurology drug candidate, PF-04958242, which is being developed to address cognitive impairment associated with schizophrenia (CIAS). The deal, potentially worth almost $600 million, includes an upfront payment of $75 million, with additional milestone payments and royalties that could total up to $515 million.

Strategic Expansion in Neuroscience

PF-04958242 is an AMPA receptor potentiator ready to enter phase 2 development. AMPA receptors play a crucial role in fast excitatory synaptic transmission in the central nervous system, which can be disrupted in various neurological and psychiatric diseases, including schizophrenia.

Previously, PF-04958242 demonstrated an acceptable safety profile and promising trends in treatment effects across multiple cognitive domains during phase 1b trials. Biogen plans to initiate a phase 2b trial in the latter half of this year, marking a critical step forward in the drug’s development.

Addressing a Critical Unmet Need

Commenting on the acquisition, Michel Vounatsos, CEO of Biogen, stated: “As pioneers in neuroscience, Biogen continues to explore new ways to treat serious diseases where there are few or no options, such as CIAS. Given the significant unmet patient need and Biogen’s ability to apply its scientific expertise in this area, we are enthusiastic to advance development of this asset as we continue to expand our neuroscience pipeline, including in our emerging growth areas such as neuropsychiatry.”

Biogen highlights that over 20 million people worldwide suffer from schizophrenia, with most experiencing some degree of cognitive impairment. This aspect of the disease is increasingly considered one of the greatest unmet needs in effective treatment.

Michael Ehlers, Executive Vice President of Research & Development at Biogen, elaborated on the importance of addressing cognitive impairments: “When cognition is impaired, you lose the ability to make sense of the world. Cognition can be impaired in multiple neurological and neuropsychiatric diseases, including schizophrenia. And we know that the extent of cognitive deficits in patients with schizophrenia is a strong predictor of daily functioning. We look forward to quickly pursuing development of this potential innovative therapy to treat such a devastating disease.”

This acquisition is strategically significant for Biogen, as it not only broadens its neuroscience portfolio but also positions the company as a leader in developing treatments for neuropsychiatric conditions, potentially transforming the treatment landscape for schizophrenia.

Biogen’s acquisition of PF-04958242 is expected to be completed by the second quarter of this year, subject to customary closing conditions. This deal marks a promising advancement in the field of neuropsychiatry and underscores Biogen’s commitment to addressing complex neurological diseases.