Bionomics in $345 million CNS deal with Ironwood

Australian biotech firm Bionomics (ASX: BNO) entered into a collaboration, research and licensing agreement with USA-based Ironwood Pharmaceuticals (Nasdaq: IRWD) that will enable the latter to develop and commercialize Bionomics’ investigational anti‐anxiety compound BNC210 and other related compounds.

On the achievement of certain development and regulatory milestones, Bionomics could receive up to $345 million in upfront and milestone payments and research funding, as well as royalties on sales of products incorporating BNC210 and other related compounds. Over the next 24 months, Bionomics may receive up to $13 million in research funding and milestone payments, including an initial payment of $3 million. Surprisingly, Bionomics’s shares closed down 3.3% at A$0.58 on the news.

Preclinical studies indicate anti-anxiety activity for compound