(Reuters) – Biogen Inc will take a $650 million stake in Sage Therapeutics and pay $875 million in upfront payment as they jointly develop and sell treatments for neurological disorder, the two companies said on Friday.
Under the terms of agreement, Sage will receive $1.525 billion in cash comprising an upfront payment of $875 million and a $650 million equity investment. It will also be eligible to get up to $1.6 billion in potential milestone payments.
Biogen will purchase about 6.2 million newly issued shares of Sage for $104.14 apiece, a 26% premium to Sage’s Wednesday closing price.
The companies will collaborate on two drugs for neurological disorders – zuranolone and SAGE-324 – in the United States. Biogen will get exclusive rights to sell the drugs outside of the United States, excluding rights to zuranolone in Japan, Taiwan and South Korea.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Arun Koyyur)
