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.
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