Biovail, Acadia, GlaxoSmithKline deal

Biovail announced a pair of deals and the closure of an R&D facility in Canada, all related to the company's refocus on neurology announced last year. Acadia granted Biovail exclusive rights in the U.S. and Canada to develop and commercialize pimavanserin tartrate ( ACP-103). The small molecule serotonin (5-HT2A) receptor inverse agonist is in Phase III testing to treat Parkinson's disease psychosis (PDP). Biovail also will lead development of the compound for Alzheimer's disease psychosis (ADP). Pimavanserin also has completed a Phase II proof-of-concept trial for schizophrenia.

Acadia will receive $30 million up front and is eligible for up to $365 million in milestones, including $45 million for development of the compound for a third indication. Acadia is also eligible for a 15% royalty on annual sales of up to $100 million, and a 20% royalty on sales over $100 million. Acadia has an option to co-promote in the U.S. and retains rights outside the U.S. and Canada for all indications. Acadia will continue to manage the ongoing Phase III trials for PDP, and Biovail will be responsible for all future development costs. ...