Biopharmaceutical company Alkermes yesterday agreed to acquire US-based neurological disease drug developer Rodin Therapeutics for up to $950m, enabling medical group Johnson & Johnson and internet technology conglomerate Alphabet to exit.
The transaction will consist of $100m in cash upfront and up to $850m in milestone payments related to regulatory and clinical progress and pre-set sales levels.
Rodin is developing treatments for neurodegenerative diseases like Alzheimer’s disease, Lewy body dementia, Huntington’s disease and frontotemporal dementia as well as sickle cell disease and cancer.
The company’s small molecule therapeutics will rely on targeting selected protein complexes which can modulate gene expression. They are intended to complement Alkermes’ range of treatments for central nervous system diseases.
Craig Hopkinson, Alkermes’ chief medical officer, said: “Synaptic loss and dysfunction are associated with certain clinical symptoms regardless of the underlying pathology.
“The platform that Rodin has developed may offer potential utility across a broad spectrum of neuropsychiatric, neurodegenerative and neurodevelopment disorders, such as Alzheimer’s disease, Huntington’s disease, frontotemporal dementia and depression.
“In addition, this novel science could have potential applicability in oncology and haematological disorders.”
The deal comes in the wake of more than $57m of equity funding for Rodin, which raised $27m in 2017 from Alphabet subsidiary GV, Atlas Venture, Hatteras Venture Partners, Remeditex Ventures and Third Point Ventures, a subsidiary of hedge fund Third Point Management.
Atlas Venture and biotech company Biogen had provided $17.3m in preferred stock financing for the company in 2016, after the former joined corporate venturing unit Johnson & Johnson Innovation – JJDC to invest an undisclosed amount in 2013 and $12.9m two years later.
