Astellas and CoMentis to end Alzheimer’s collaboration

Japanese drug major Astellas Pharma (TYO: 4503) and US biotech firm CoMentis have said they will end their worldwide exclusive collaboration agreement for research, development and commercialization of beta-secretase inhibitors for Alzheimer’s disease.

Signed in 2008 and worth a potential $740 million (The Pharma Letter May 5, 2008), Astellas has exercised its right to terminate the collaboration agreement, based on the outcome of the research and development collaboration. Upon the effective date of termination, Astellas will return to CoMentis all rights granted under the collaboration agreement.

Astellas has recognized impairment losses on other intangible asset of 8.1 billion yen ($75.9 million) in the first three months of the current fiscal year (from April 1, 2014 to March 31, 2015). Astellas has so far paid over $100 million up front in cash and equity to CoMentis.