Pipeline Therapeutics has entered into a global license and development agreement with Janssen Pharmaceutica NV (Janssen), one of the Janssen Pharmaceutical Companies of Johnson & Johnson, for the investigational compound, PIPE-307 to treat nervous system disorders.
PIPE-307 is an oral, highly selective antagonist of the muscarinic M1 receptor, which has completed two Phase 1 clinical trials in healthy patients and has received Investigational New Drug clearance from the Food and Drug Administration (FDA) to initiate clinical development in relapsing-remitting multiple sclerosis (RRMS) patients.
“We are excited to announce this agreement, which is aligned with our vision to maximize the reach of PIPE-307 through clinical evaluation in RRMS and other neurological disorders,” said Carmine Stengone, president and CEO of Pipeline.
“In addition, we are pleased that we will strengthen our financial position with the upfront payment from this agreement and equity investments from existing and new investors, enabling us to extend our runway and to continue advancing our portfolio in small molecule neuroregeneration.”
Under the terms of the agreement, Pipeline will grant Janssen a worldwide, exclusive license to research, develop and commercialize PIPE-307 in all indications. Pipeline will have the right to continue to advance PIPE-307 for the treatment of RRMS through conduct of a Phase 2 clinical trial.
Upon closing of the transaction, Pipeline will receive $50m in an upfront payment from Janssen and separately up to $25m in an equity investment from Johnson & Johnson Innovation – JJDC, Inc. and up to $25m in equity investments from Pipeline’s existing investors. Pipeline is also eligible to receive approximately $1 billion in success-based payments including clinical, regulatory and commercial milestones, as well as tiered double-digit royalty payments, which increase if the co-development option for PIPE-307 is exercised by Pipeline.
