Orion licenses Janssen to develop novel treatment for Alzheimer's disease

Finland-based drugmaker Orion Corp (Nasdaq OMX Helsinki: ORNAV) has entered into a license agreement with Janssen Pharmaceuticals, subsidiary of US health care giant Johnson & Johnson (NYSE: JNJ), for the development and commercialization of Orion's investigational alpha-2c adrenoceptor antagonists for the symptoms of Alzheimer's disease, including a clinical phase compound ORM-12741.

According to the agreement, Orion will receive an upfront $31 million and is eligible to receive milestone payments from Janssen on completion of certain development and commercialization events, as well as royalties on future sales. Orion will use the majority of the up-front payment over the next few years against the costs of the additional Phase IIa study sponsored by the company.

Orion will have exclusive commercialization rights in Europe and will grant Janssen a worldwide exclusive license to develop ORM-12741 and other compounds of alpha-2c platform. Janssen will have an exclusive right to commercialize these compounds outside Europe. Orion and Janssen will co-fund the development after an additional Phase IIa study is completed successfully by Orion. The company said the agreement causes no change on Orion's full-year 2013 outlook.