Biogen has agreed to buy an early-stage experimental treatment for patients with Alzheimer's and Parkinson's disease from Pfizer for $75 million, plus up to $635 million in potential milestones, as well as royalties. Shares of both companies were little changed following the announcement.
Continue Reading Below
The early-stage asset may potentially be used as a treatment of sundowning in Alzheimer's disease and Irregular Sleep Wake Rhythm Disorder in Parkinson's disease.
Sundowning is a symptom experienced by 20 percent or more of patients who become confused, anxious or agitated later in the day. ISWRD is a circadian rhythm disorder that leads to fragmented sleep and severe fatigue.
"This asset is highly complementary to our existing pipeline of potential disease-modifying therapies in Alzheimer's and Parkinson's diseases," Biogen Chief Medical Officer Alfred Sandrock Jr. said in a statement.
Last March, Biogen and its Japanese partner Eisai halted advanced trials of their experimental Alzheimer's treatment that was expected to bring in up to $12 billion a year in revenue. Rivals Eli Lilly, AstraZeneca and Merck have also recently abandoned experimental treatments for Alzheimer's.
Biogen expects the deal to close in the first quarter of 2020.
Shares of both Biogen and Pfizer are little changed this year after falling 1.4 percent and 10.2 percent respectively in 2019.