Boehringer Ingelheim and Vitae Announce R&D Collaboration to Develop Treatments for Alzheimer’s Disease
News Jun 16, 2009
Boehringer Ingelheim and Vitae Pharmaceuticals, Inc., announced that they have entered into a significant worldwide collaboration to research and develop beta-secretase (BACE) inhibitors for the treatment of Alzheimer’s disease.
Current therapies for Alzheimer’s disease can improve symptoms, but do not affect the progression of the disease. The inhibition of BACE - an enzyme involved in the formation of amyloid-beta plaques which accumulate in the brains of patients with Alzheimer’s disease - offers the potential to slow or even halt disease progression.
Under the terms of the collaboration agreement, Vitae will receive $42 million in upfront and near-term payments from Boehringer Ingelheim, consisting of upfront cash, an equity investment in Vitae, and research funding to support further discovery efforts.
In addition, Vitae will be eligible to receive $200 million in pre-commercial milestone payments based on the achievement of clinical and regulatory goals, as well as further milestone payments based on potential additional compounds and / or other approved indications.
Vitae will receive commercial performance payments and royalties from Boehringer Ingelheim on all potential future product sales. Further financial details were not disclosed.
The companies will work jointly to identify and advance candidates for clinical development. Thereafter, Boehringer Ingelheim will lead development and commercialization of all products for Alzheimer’s disease to capitalize on its global marketing and sales expertise. Vitae will have the right to develop products independently for certain other indications.
“I am very pleased to be working with Boehringer Ingelheim’s exceptional neuroscience group on this program,” said Jeffrey Hatfield, CEO of Vitae.
“This collaboration accomplishes three important objectives for our company. It adds substantial neuroscience expertise and specialized resources to the BACE program, which has advanced remarkably during its 16-month life. It also extends what is already a very successful partnership model with Boehringer Ingelheim, stemming from our existing diabetes and metabolic syndrome collaboration. Boehringer Ingelheim’s team-oriented culture presents an ideal environment for partnership success. And finally, it continues Vitae’s business model of financing the company’s growth through rapid value creation and partnering versus relying on the capital markets – which is favorable for our shareholders.”