Cypress Bioscience in-licenses novel antipsychotic from BioLineRx for potential $365 million

21 June 2010

San Diego, USA-based Cypress Bioscience has entered into an exclusive North American licensing deal for the development and commercialization of Israeli company BioLineRx' novel antipsychotic (BL-1020, hereafter CYP-1020), a potential breakthrough treatment for schizophrenia. The news lifted BioLinexRx' share price 10.4% to 4.62 shekels this morning.

Specific terms of the transaction were not disclosed, but the upfront payment to BioLineRx was $30 million, with total potential clinical and regulatory milestones of up to $160 million through to approval in the USA (the majority of which are related to improvement in cognition), potential commercial milestones of $85 million, and a possible additional $90 million associated with approval for additional indications in the USA or in other countries in North America. In addition, Cypress will fund all continuing development activities and pay BioLineRx a royalty - of 12% to 18% - based on applicable sales.

Addresses psychotic symptoms and cognitive deficits

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