Denmark-based global pharmaceutical company H. Lundbeck A/S (Lundbeck) (CPH: HLUN-A, HLUN-B) and Danish clinical-stage biotech company Contera Pharma have entered into a strategic research collaboration to accelerate discovery and development of oligonucleotide-based medicines for serious neurological conditions, H. Lundbeck announced on Monday.

The companies will explore novel RNA-targeting approaches and leverage Lundbeck's more than 70 years of neuroscience experience alongside Contera Pharma's RNA discovery platforms AttackPoint discovery, OligoDisc, and SpliceMatrix.

Under the agreement Contera Pharma will receive an upfront payment and full research funding per target, and will be eligible for milestone payments tied to pre-clinical, clinical, regulatory and commercial achievements plus tiered royalties on future net sales.

Lundbeck retains options to advance promising candidates into later-stage clinical development and global commercialisation as part of its strategy to broaden its research portfolio and build its neurodegeneration treatment pipeline. The company described the collaboration as an opportunity to expand its pipeline with RNA-targeting candidates for conditions with few or no treatment options.

Contera Pharma said the deal validates its RNA discovery engine and will accelerate its mission to deliver innovative oligonucleotide therapies for patients with high unmet needs.