6:12 PM
Jun 13, 2018
 |  BC Extra  |  Company News

Shionogi gains Asian rights to SAGE-217

Shionogi & Co. Ltd. (Tokyo:4507) licensed exclusive rights to SAGE-217 from Sage Therapeutics Inc. (NASDAQ:SAGE) in Japan, Taiwan and South Korea to treat major depressive disorder (MDD).

Shionogi will pay Sage $90 million up front, with Sage eligible to receive development and commercial milestones of up to $485 million and tiered royalties averaging “in the greater than 20% range.”

Shionogi will be responsible for all clinical development, regulatory filings and commercialization of the second-generation positive allosteric modulator (PAM) of GABA A receptor for MDD, and potentially other indications, in the territories. Sage also retains certain rights to co-promote SAGE-217 in Japan across all indications. The partners announced the partnering news after market close on Wednesday.

On Tuesday, Sage announced expedited plans for the candidate and will convert to a pivotal trial an ongoing Phase II trial to treat postpartum depression, with data due in 4Q18. The company also announced plans to begin a Phase III trial next half of the compound for MDD, for which it has breakthrough therapy designation. The pair of studies will evaluate two weeks of short-course treatment of SAGE-217.

Sage also has the candidate in Phase II testing to treat bipolar depression and insomnia.

Sage dipped $4.68 to $164.84 on Thursday but remains up $16.11 (11%) on the week.

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