Lundbeck divests two non-core preclinical programs

Aiming to further focus its preclinical research pipeline, Danish CNS specialist Lundbeck (LUN: CO) is divesting two research programs to US biotech company MindImmune Therapeutics.

In exchange for the programs, Lundbeck receives an equity interest in MindImmune, which was founded in 2016, as well as milestone payments and royalties according to the progression of the programs. No further financial terms were disclosed.

The agreement follows Lundbeck's strategy of focusing its efforts within four disease areas; depression, schizophrenia, Alzheimer's disease and Parkinson's disease, for which the programs are not relevant. Per its strategy Lundbeck itself has therefore not prioritized further development of the programs, but the agreement ensures that these potential new treatments will now be brought forward. There will be no costs for Lundbeck associated with the future development of the programs.