Biogen Inc. said Monday it reached a deal to buy a phase-2b-trial-ready schizophrenia treatment, PF-04958242, from Pfizer Inc. for up to $590 million. The deal includes an upfront payment of $75 million and up to $515 million in potential milestone payments, as well as tiered royalties. The treatment has demonstrated an “acceptable” safety profile and treatment effect in phase-1b clinical studies, and Biogen plans to initiate a phase-2b trial in the second half of 2018. The deal is expected to close in the second half of 2018. Pfizer’s stock was indicated up less than 1% in premarket trade, while Biogen shares were still inactive. Over the past 12 months, Pfizer’s stock has rallied 7.8%, while Biogen shares have lost 2.1% and the Dow Jones Industrial Average has run up 21%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News