Acadia Pharmaceuticals Inc. (Nasdaq: ACAD) announced it has entered into an exclusive worldwide license agreement with Saniona (OMX: SANION) for the development and commercialization of SAN711, a first-in-class, highly selective GABA_A-α3 positive allosteric modulator. The first indication the Company plans to pursue is development of SAN711 for essential tremor, a neurological condition that includes shaking or trembling movements in one or more parts of the body. Acadia is planning to initiate a Phase 2 study of SAN711 in essential tremor in 2026.

“Licensing SAN711 to expand our pipeline underscores our unwavering commitment to delivering innovative therapies for patients with central nervous system disorders,” said Catherine Owen Adams, Chief Executive Officer. “Essential tremor is a condition that has not seen innovation in treatment for decades, creating a compelling opportunity to address a long-overlooked need. Our work with SAN711 will draw on our deep expertise in developing and commercializing cutting-edge treatments for neurological disorders.”

Under the terms of the License Agreement, Saniona will receive US $28 million upfront plus potential milestone payments of up to US $582 million. In addition, Saniona is eligible to receive tiered royalties of mid-single digits to low double digits on net sales of commercial products that may result from development of SAN711. The potential milestone payments to Saniona consist of up to US $147 million subject to achievement of development and commercial milestones related to potential first and second indications, and up to US $435 million subject to achievement of thresholds of annual net sales of SAN711 worldwide. Acadia will lead further clinical development, regulatory submissions, and global commercialization efforts for SAN711 while also providing financial support for Saniona’s ongoing Phase 1 study and preparations for Phase 2.