Eisai makes milestone payment in Alzheimer's collaboration with BioArctic

21 May 2019

Sweden’s BioArctic (Nasdaq Stockholm: BIOA B) saw its shares rise 6.53% to 79.90 Swedish kronor by mid-morning, following its announcement after markets closed on Monday that it had received a 15 million-euro ($16.7 million) payment from its partner Eisai (TYO: 4523) for the achievement of the first patient being dosed in the global, single confirmatory Phase III study (Clarity AD) with BAN2401 in early Alzheimer´s disease.

Eisai is responsible for the clinical development of BAN2401, including this confirmatory Phase III study, and BioArctic is entitled to milestone payments and royalties. The total value of the payments to BioArctic under the collaborations can amount to 218 million euros and in addition there are high single digit royalty payments.

BioArctic has no development costs for BAN2401 in Alzheimer's disease. BioArctic says the milestone payment will contribute positively to BioArctic's revenues in the second quarter of 2019. With this payment, BioArctic will have received 62 million euros so far from Eisai.

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