Lundbeck and Otsuka to co-develop Alzheimer’s vaccine, Lu AF20513

Danish CNS specialist Lundbeck (LUND: CO) and Japanese drugmaker Otsuka Pharmaceutical (TYO: 4768) say they will further expand their collaboration to include the development of Lu AF20513, an investigational vaccine candidate against Alzheimer's disease.

Lundbeck will receive from Otsuka an initial payment of 4 million euros $5.5 million) on signing and Lundbeck will finance the Phase I development costs. It is expected that the Phase I trial will be initiated during 2014. Additional specific financial terms of the agreement remain undisclosed. Following completion of the Phase I study the parties have an option to enter into a co-commercialization and co-development agreement under terms to be agreed upon.

Lu AF20513 is an active anti-A-beta vaccine candidate against Alzheimer's disease which is currently in preclinical development. It is designed towards an optimal immunogenic response in the elderly, based on the hypothesis that cognitive function would be preserved through the early inhibition of amyloid beta depositions.