Otsuka Enters Worldwide Collaboration Agreement With Sunovion and Sumitomo Dainippon Pharma
Seattle – October 13, 2021 – Cooley advised Otsuka Pharmaceutical, a global healthcare company, on its worldwide collaboration and license agreement with biopharmaceutical company Sunovion Pharmaceuticals and parent company Sumitomo Dainippon Pharma for the joint development and commercialization of four novel candidate compounds. Lawyers Alison Freeman-Gleason and Brian Stalter led the Cooley team advising Otsuka.
By leveraging their complementary therapeutic area expertise and capabilities, the companies expect to fully explore the medical potential of the compounds in the collaboration and accelerate development timelines to bring forward important treatments for people living with neuropsychiatric health conditions worldwide. Otsuka’s subsidiary, Otsuka Pharmaceutical Development & Commercialization, will jointly lead the effort with Sunovion to advance the research and development program globally, as well as plan for future commercial activities.
“Otsuka has been committed to providing new antipsychotics that contribute to patients worldwide in the field of neuropsychiatry by leveraging internal capabilities and external collaborations, starting with the launch of antipsychotics in the US in 2002,” Makoto Inoue, president and representative director of Otsuka, said in a news release. “Through this agreement, we are confident the companies will be able to deliver even more value to patients through the experience and networks that we have cultivated over many years worldwide.”
Upon completion of the agreement, Otsuka will pay Sunovion an upfront payment of $270 million. In addition, Sunovion is eligible to receive development milestone payments of up to $620 million for the four compounds, as well as relevant sales milestone payments. Sunovion and Otsuka will share profits from the compounds, and all expenses for clinical studies, applications for approval and commercialization in each country.
Otsuka Pharmaceutical researches, develops, manufactures and markets innovative products, with a focus on pharmaceuticals to meet unmet medical needs and nutraceuticals for the maintenance of everyday health. In pharmaceuticals, Otsuka is a leader in the challenging areas of mental, renal and cardiovascular health, and has additional research programs focused on oncology and several under-addressed diseases – including tuberculosis, a significant global public health issue.
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