BioCentury
ARTICLE | Company News

Paion, Lundbeck deal

March 5, 2012 8:00 AM UTC

Paion granted partner Lundbeck all remaining rights and IP relating to stroke candidate desmoteplase (DPSA) for €20.1 million ($27 million) in cash. The deal amends for a third time the original 2005 deal between Paion and Lundbeck, which granted Lundbeck exclusive, worldwide rights to develop and commercialize DPSA. Lundbeck will have no further obligations to Paion, while Paion will have no further milestone and royalty obligations to Bayer, which is eligible to receive milestones and single-digit royalties from Lundbeck. Paion in-licensed the compound in 2000 from Schering AG, now part of Bayer AG (Xetra:BAYN, Leverkusen, Germany) (see BioCentury, Oct. 25, 2010).

Paion, which restructured late last year, said it will have about €22.5 million ($30.2 million) in cash following the transaction, which will allow the company to continue corporate activities into 2014. Paion said it has made the strategic decision to abandon stroke and it will focus on anesthesia and out-licensing sedation candidate remimazolam (see BioCentury, Jan. 2). ...