BioArctic AB (STO:BIOAB), a Swedish research-based biopharmaceutical company, announced on Monday that it will receive a milestone payment of EUR15m from its partner Eisai for the achievement of the first patient being dosed in the global, single confirmatory phase 3 study (Clarity AD) with BAN2401 in early Alzheimer's disease.

Under this partnership, Eisai is responsible for the clinical development of BAN2401, including this confirmatory phase 3 study, and BioArctic is entitled to milestone payments and royalties. The total value of the payments to BioArctic under the collaborations can amount to EUR218m and in addition there are high single digit royalty payments.

BioArctic has no development costs for BAN2401 in Alzheimer's disease.

With the first patient dosed in the confirmatory phase 3 study, BioArctic will receive the milestone payment of EUR15m, which contributes positively to BioArctic's revenues in the second quarter of 2019. With this payment, BioArctic will have received EUR62m so far from Eisai.

Since 2005, BioArctic has long-term collaboration with Eisai regarding the development and commercialisation of drugs for the treatment of Alzheimer's disease. The most important agreements are the development and commercialisation agreement on the BAN2401 antibody, which was signed in December 2007, and the development and commercialisation agreement on the antibody BAN2401 back-up for Alzheimer's disease, which was signed in May 2015. Eisai is responsible for the clinical development, application for market approval and commercialisation of the products for Alzheimer's disease. BioArctic has no development costs for BAN2401 in Alzheimer's disease.

BioArctic is focusing on disease-modifying treatments and reliable biomarkers and diagnostics for neurodegenerative diseases, such as Alzheimer's disease and Parkinson's disease.