Medivation investors were treated to a 31 percent spike in their stock value after news broke this morning of a big licensing deal with Pfizer. The pharma giant will shell out a whopping $225 million upfront fee and up to $500 million more in regulatory milestones in exchange for 60 percent of the U.S. profits from Dimebon. Medivation retains the rights to market the drug candidate--now in late-stage testing for Alzheimer's while also being studied for Huntington's disease--to specialty physicians in the U.S. and Pfizer will cover 60 percent of development costs. Pfizer gains regulatory and commercialization responsibility outside of the U.S. and will also pay Medivation sales milestones and royalties.
"After a rigorous process that garnered substantial interest, we believe that Pfizer is the ideal partner, sharing our vision for Dimebon and capable of maximizing its potential globally," said Dr. David Hung, president and chief executive officer of Medivation.
In a recent trial, Dimebon proved effective in preventing brain cell death in patients with both Huntington's and Alzheimer's disease. The therapy is designed to improve the performance of mitochondria inside cells, thus improving brain function.
- check out the Medivation release
- read the AP report