WASHINGTON (dpa-AFX) - Adamas Pharmaceuticals, Inc. (ADMS) said Tuesday that it has received a $25 million milestone payment from Forest Laboratories Holdings Ltd. related to the development of MDX-8704.
MDX-8704, a fixed-dosed combination of memantine HCl extended release capsules and donepezil HCl, is being developed as a once daily therapy for the treatment of moderate-to-severe dementia of the Alzheimer's type in the United States.
The $25 million milestone payment was paid to Adamas as a result of the Food and Drug Administration's acceptance of the New Drug Application for MDX-8704.
Pursuant to the license agreement between Forest and Adamas, Forest paid Adamas a $65 million upfront payment in November 2012 and $40 million in the fourth quarter of 2013 for work related to the development of MDX-8704. Subsequent to the most recent $25 million payment, there is up to a $30 million milestone payable upon FDA approval. Also under the terms of the license agreement, Adamas will receive royalties on US net sales of Namenda XR and MDX-8704 beginning five years after their launches.
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