(RTTNews) - Biopharmaceutical company Alkermes plc (ALKS) and Rodin Therapeutics, Inc. announced that Alkermes will acquire privately-held biopharmaceutical company Rodin, which is focused on developing novel, small molecule therapeutics for synaptopathies.
This transaction builds on Alkermes' experience and expands its Presence in central nervous system (CNS) diseases to a wide range of neurodegenerative diseases through epigenetic control of synaptogenesis.
Under the terms of the definitive agreement, and subject to the conditions and adjustments set forth therein, Rodin's security holders will receive an upfront cash payment of $100 million upon the closing of the transaction.
It will be eligible to receive future payments of up to $850 million upon achievement by Rodin's development candidates of certain specified clinical and regulatory milestones, and attainment of certain sales thresholds.
The upfront cash payment is expected to be funded by Alkermes' available cash and accounted for as an asset acquisition, with substantially all of the upfront payment recorded as R&D expense. Alkermes expects to complete the transaction by the end of November 2019.
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