Biogen to buy experimental Alzheimer's, Parkinson's treatment from Pfizer for $75M plus incentives

Pfizer can earn up to $635M in milestones plus royalties

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.

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TickerSecurityLastChangeChange %
BIIBBIOGEN INC.287.19+1.69+0.59%
PFEPFIZER INC.40.34-0.17-0.42%

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.

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"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.

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Shares of both Biogen and Pfizer are little changed this year after falling 1.4 percent and 10.2 percent respectively in 2019.