Myriad Genetics Sells Flurizan Rights

Lundbeck A/S will pay as much as $350 million for European rights to the late-stage Alzheimer's drug.
By Elizabeth Trotta ,

Myriad Genetics

(MYGN) - Get Report

said early Thursday that it sold rights outside the U.S. rights to its late-stage Alzheimer's drug Flurizan. The biotech company struck a deal worth as much as $350 million with Lundbeck A/S.

The Danish company will pay Myriad $100 million upfront and up to $250 million in milestones as well as future royalties for European rights for the drug, which is in late-stage development. Topline data from a pivotal late-stage study on the drug -- a strong indicator of its potential -- is expected in June or July.

Shares of the Salt Lake City, Utah-based biotechnology company opened up 4% at $47.91.

Myriad isn't alone in its pursuit to target Alzheimer's. Competitor

Elan

(ELN)

and partner

Wyeth

(WYE)

also have an Alzheimer's treatment, bapineuzumab, in pivotal late-stage studies.

Under today's agreement, Myriad will recognize the $100 million upfront payment over the life of the agreement. The payment will trigger a sublicense royalty payment to Encore Pharmaceuticals, which will be recognized this year, and is expected to materially increase Myriad's research expenses and net loss in the fourth quarter of 2008, according to the company.

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