Lundbeck takes 5% stake in Biotie; amends Selincro licensing deal

Danish CNS drug specialist Lundbeck A/S (LUND: DC) said this morning that it has made an investment of 10 million euros ($12.6 million) Finland based biotech firm Biotie Therapies (OMX: BTH1V), at 0.5375 euros per share, representing 4.6% of the total equity capital in Biotie and a 25% premium to the latter’s closing price on September 6. Biotie shares rose 2.3% to 0.45 euros, while Lundbeck edged 0.3% higher to 109.10 Danish kroner, in early trading.

In connection with this transaction, to facilitate the potential launch outside Europe of Selincro (nalmefene), a drug under development for the treatment of alcohol dependence, the royalty rates on Selincro in countries outside Europe and the USA have been reduced. However, Biotie is to receive an additional sales milestone following the achievement of an undisclosed sales target in Japan, increasing the total milestone package to 89 million euros from 84 million euros previously.

Lundbeck, which holds worldwide development and commercialization rights to Selincro, a novel opioid system modulator, filed a marketing authorization application for Selincro with European Medicines Agency in December 2011 and a decision on potential approval is expected in the fourth quarter of this year.