AbbVie taps Alzheimer’s Platform at Alector in $225M Neurodegenerative
AbbVie Inc. is diving deeper into Alzheimer’s drug development, announcing its R&D deal with South San Francisco-based private biotech Alector LLC to advance immuno-neurology treatments for the disease and other neurodegenerative disorders.
Under the drug deal, Alector will receive $205 million upfront and a potential equity investment of up to $20 million from AbbVie as part of a deal to research, develop and eventually sell drugs targeting dementia, particularly in Alzheimer’s patients.
Also, the deal will have the two firms researching a portfolio of antibody targets. AbbVie has an option for two of the targets for global development and commercial rights. Alector will handle the exploratory research, drug discovery, and development of the lead programs up to the end of proof of concept studies. Once AbbVie exercises its options, it will take over development and commercialization. The research will be co-funded and global profits will be shared.
Alector is in the process of a big new equity round, with investors including Merck, OrbiMed, Polaris, Mission Bay Capital and Topspin Partners. The company has already raised more than $80 million in four years.
Alector is responsible for exploratory research and drug development through proof-of-concept investigations, while AbbVie will take the helm once it exercises its
option. The companies plan to jointly finance development costs and split any global profits equally. Alector may also receive a future equity investment worth up to $20 million.“Alzheimer’s is among the most difficult-to-treat diseases and there is an urgent need for new scientific approaches that lead to better therapies for patients,” said AbbVie’s vice president of pharmaceutical discovery, Jim Sullivan, in a statement. “Alector’s unique approach to engaging the immune system to combat neurodegeneration reflects our commitment to target this epidemic in new ways. We recognized the potential of Alector’s research first as an AbbVie Ventures portfolio company and are now eager to partner with them to further develop this platform into meaningful advances for patients.”
“We seek to advance the field of immuno-neurology as a new therapeutic modality for dementia and neurodegeneration. We anticipate that immuno-neurology therapies will have as much of an impact on brain disorders as immuno-oncology is having on cancer,” said Arnon Rosenthal Ph.D., chief executive officer, Alector. “We look forward to co-developing our disease-modifying drugs in true partnership with AbbVie, which is making a bold commitment to the field.”