Otsuka Pharmaceutical Co (OPC), the drug production arm of diversified conglomerate Otsuka Holdings, agreed on Thursday to acquire Neurovance, an attention-deficit hyperactivity disorder (ADHD) treatment developer backed by pharmaceutical firm Novartis.
OPC subsidiary Otsuka America will pay $100m for Neurovance up front, with up to $150m in further payments to come if it meets specific developmental milestones. Additional payments are dependent on the company meeting certain sales milestones.
Spun out of biopharmaceutical company Euthymics Bioscience in 2011, Neurovance is developing a triple reuptake inhibitor to combat ADHD.
The company’s lead product candidate, centanafadine, will hypothetically work by modulating the uptake of norepinephrine, dopamine and serotonin in order to improve patients’ focus, attention and cognitive skills. It has completed two phase 2 clinical trials and is ready to commence phase 3 trials.
Neurovance had raised $27m in equity and $8m in debt financing, according to regulatory filings, closing a $26.5m series A round in June 2015 that included Novartis Venture Fund, the strategic investment arm of Novartis.
The series A round also featured JPMorgan Chase units H&Q Healthcare Investors and H&Q Life Science Investors as well as Venture Investors, GBS Venture Partners, State of Wisconsin Investment Board and angel investor Timothy J. Barberich.
Tatsuo Higuchi, president of Otsuka Pharmaceutical, said: “Otsuka has been investing prudently in acquiring assets and collaborating on the development of new technologies that address specific patient needs in the central nervous system, cardio-renal and oncology therapeutic areas.
“Neurovance’s resources will be a welcomed, integral part of our activities in [the central nervous system].”