TOKUSHIMA, Japan/COPENHAGEN - Japanese drugmaker Otsuka Holdings Co and Danish peer Lundbeck are to jointly develop and sell up to five psychiatric and neuroscience drugs in a deal seen offering their pipelines a much-needed boost.
Shares in Lundbeck jumped in the wake of the announcement from the pairing on Friday, and were up 5.0 percent at 111.2 Danish crowns at midday, against a 0.5 percent rise in the STOXX Europe 600 healthcare index and a 0.9 percent rise in the Copenhagen bourse's bluechip index.
"We see this deal as clearly positive for Lundbeck and it bodes well for long-term revenue, top-line diversification and company perception," said Nordea in a note to clients.
Lundbeck will make an upfront payment of $200 million to Otsuka, Japan's No. 2 drugmaker. Otsuka said the agreement could bring it up to $1.8 billion in royalties and milestone payments.
"There is no doubt that this is not a cheap deal for Lundbeck, but it is necessary," Nordea said. Lundbeck's most important drug will lose patent protection in 2012.
Saturday, November 12, 2011
Drugmakers Lundbeck, Otsuka form global alliance | Reuters