Monday, contract research organization Pharmaceutical Product Development Inc. or PPD, Inc. (PPDI) revealed an agreement with Janssen Pharmaceutica N.V. to develop and commercialize two, phase II-ready therapeutic compounds.
One of the investigational drugs is to treat diarrhea-predominant irritable bowel syndrome or IBS-d and the other is being developed as an oral and intravenous therapy to treat skin and respiratory infections. The IBS-d compound is a potential first-in-class drug.
Under the two agreements, PPD in-licensed the two assets and will advance the compounds through phase II development. At the completion of phase II trials, Janssen will have the option to resume development and commercialization of each compound.
In exchange, PPD will receive up to $330 million in clinical and sales milestones and royalties on sales of the compounds if approved for marketing. If Janssen does not buy back a program, PPD will have the option to continue developing and commercializing the compound for that program and Janssen will receive up to $250 million in clinical and sales milestones and royalties on sales of the compounds if approved for marketing.
PPDI closed Monday's regular trading session at $21.19, up $0.53, on the Nasdaq.
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