UCB (UCBJF) recently announced that it has entered into a partnership agreement with Synosia Therapeutics for the development of neurological disease treatments. As per the terms of the deal, Synosia granted UCB worldwide rights to two compounds for non-orphan indications. The mid-stage compounds, SYN-115 and SYN-118, are being evaluated for the treatment of Parkinson’s disease.
Under the deal, Synosia will be responsible for phase II development of these compounds, at which time UCB will step in. UCB’s task is to complete phase III studies, file for approval with the regulatory bodies and finally market the drug. Synosia is responsible for the development of any additional molecules until phase II. Beyond that, UCB will assume responsibility.
The companies can bring in other compounds from either of their pipelines into this agreement. The terms of development of any additional compounds will be negotiated by the two companies.
For this entire deal, UCB will invest $20 million in Synosia, which will also receive an undisclosed amount upfront. Additionally, Synosia could receive up to $725 million in the form of regulatory and commercial milestone payments.
Synosia Therapeutics, based in Basel, Switzerland is focused on the development and commercialization of drugs aimed at treating neurological and psychiatric diseases with high unmet medical need. Synosia obtained the rights to SYN-115 from Roche Holding Ltd. (RHHBY) in 2007 and the rights to SYN-118 from Syngenta AG (SYT).
We currently have a Zacks #3 Rank (short-term Hold rating) on UCB. We believe that this deal will help UCB expand its already diversified neurology and immunology portfolio.
