ACADIA Pharmaceuticals Inc. (Nasdaq: ACAD) today announced that it has entered into an agreement with Biovail Laboratories International SRL ("BLS"), a wholly owned subsidiary of Valeant Pharmaceuticals International, Inc. (NYSE and TSX: VRX) ("Valeant"), pursuant to which ACADIA and BLS have agreed to conclude their previously established collaboration to develop and commercialize pimavanserin in the United States and Canada. ACADIA has regained all rights to pimavanserin and will receive a one-time cash payment of $8.75 million from BLS to transition the program back to ACADIA and cover costs associated with ongoing clinical trials. ACADIA will continue to pursue the development of pimavanserin, which is in Phase III clinical trials as a treatment for Parkinson's disease psychosis (PDP), and will have no future payment obligations to BLS.
"While we have enjoyed a great collaboration with Biovail, both parties recognize that pimavanserin and the broad development strategy at the core of our collaboration were not consistent with the strategic focus of the new Valeant following the recently completed merger," said Uli Hacksell, Ph.D., Chief Executive Officer of ACADIA. "With worldwide rights to pimavanserin and a focus on our ongoing Phase III program, we believe ACADIA is positioned on an attractive path forward for this product candidate."
ACADIA will continue to conduct the ongoing Phase III clinical trials with pimavanserin for PDP. In order to focus its resources on this advanced program, ACADIA will not continue with planned clinical trials for pimavanserin in Alzheimer's disease psychosis or schizophrenia at this time. Following receipt of the one-time payment from BLS, ACADIA will have extended its cash runway and anticipates that its existing cash resources will be sufficient to fund its operations to mid-2012.
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