GRAND RAPIDS — Drug developer Tetra Therapeutics has secured a new equity investment from Japanese pharmaceutical company Shionogi & Co. Ltd.
Going forward, the two companies plan to work together to develop and commercialize Grand Rapids-based Tetra Therapeutics’ drug compound for the treatment of Alzheimer’s disease, Fragile X syndrome and other cognitive or memory conditions, according to a statement.
The deal involved Shionogi increasing its equity stake in the company by 50 percent. As well, Shionogi has an option to complete a structured buyout of the remaining equity in Tetra if certain conditions are met in the company’s Phase 2 trial of its BPN14770 compound in treating Alzheimer’s disease.
The results of that Phase 2 trial, dubbed Picasso AD, are expected later this month. MiBiz previously reported that enrollment in the trial was happening faster than expected.
“This expanded alliance with Shionogi further validates our platform and the potential for BPN14770 to provide a new treatment option for patients suffering from Alzheimer’s disease,” Mark Gurney, Ph.D., Chairman and CEO of Tetra Therapeutics, said in a statement. “We are delighted to be expanding our collaboration with Shionogi and thank them for their continued conviction in our mission.”
Advisers on the deal included Cooley LLP, Honigman LLP and Nomura Securities International Inc.
Terms of the transaction were not disclosed.
“With the aging of our society, cognitive disorders are becoming a serious social issue,” Shionogi President and CEO Dr. Isao Teshirogi said in a statement. “We believe BPN14770 has the potential to become an innovative new treatment to help solve for this issue.”
The latest deal follows Shionogi’s $40 million investment in December 2018, as MiBiz previously reported. At the time, Shionogi said its investment could quadruple to $160 million through additional payments if the Tetra met clinical, regulatory and commercialization milestones.