Neurocrine Biosciences, Mitsubishi Tanabe to develop and commercialize NBI-98854 in select Asian markets

Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced that it has entered into an exclusive collaboration and licensing agreement for the development and commercialization of its VMAT2 inhibitor, NBI-98854, in Japan and other select Asian markets with Mitsubishi Tanabe Pharma Corporation (TSE: 4508). Mitsubishi Tanabe intends to initially develop NBI-98854 in Japan for the chorea associated with Huntington's disease and tardive dyskinesia. Neurocrine retains full commercial rights to NBI-98854 in North America, Europe and other countries outside of Asia.

Under the terms of the agreement, Neurocrine will receive an initial payment of $30 million and is eligible to receive up to $85 million in additional milestone payments associated with the development and commercialization of NBI-98854 in Asia. Upon commercialization, Neurocrine will receive royalties on product sales from Mitsubishi Tanabe territories in Asia. Neurocrine will also support Mitsubishi Tanabe's clinical efforts in developing NBI-98854 for patients suffering from the chorea associated with Huntington's disease and tardive dyskinesia.

"We are excited to have one of the leading pharmaceutical companies in Japan as our commercialization partner for NBI-98854 in Asia. Importantly, Mitsubishi Tanabe has a proven track record of developing innovative pharmaceuticals, which we believe will optimize NBI-98854's full potential in the growing Asian movement disorders market," said Kevin Gorman, President and Chief Executive Officer of Neurocrine Biosciences. "We have recently initiated the build of our North American commercial infrastructure and the signing of this international partnership meaningfully extends that commercial reach. Additionally, the economics of this agreement, given the significant milestones and substantial royalty rate, confirm the value of NBI-98854 in movement disorders."

In addition to Japan, Mitsubishi Tanabe's territory also includes China, South Korea, Philippines, Indonesia, Taiwan, Singapore, Malaysia, Thailand, and Hong Kong.