With an aim to research, develop and commercialise TS-032, a new schizophrenia drug candidate, Pfizer Inc and Taisho Pharmaceutical Co., Ltd. have signed a definitive worldwide (excluding Japan) collaboration agreement. This agreement replaces the letter of intent previously signed between the companies. TS-032 was discovered by Taisho and is currently in pre-clinical development.

Through the definitive license agreement Taisho will grant exclusive development and commercialisation rights outside Japan for TS-032 to Pfizer. Under the agreement, Taisho will receive an initial payment of US $22 million from Pfizer. Taisho will also receive milestone payments tied to progress of development, as well as royalties and milestone payments tied to sales if TS-032 is approved by regulatory authorities and launched.

"We are pleased to partner with Taisho in this important area of research. Schizophrenia is among the most chronic and disabling of mental health conditions and there still remains a significant need for novel treatment advances with improved efficacy and fewer side effects," said Dr. Martin Mackay, president, Pfizer Global Research and Development. "Pfizer has a long-standing strength in developing and commercialising medications for the treatment of psychiatric illnesses, including Zoloft, Xanax and Geodon. This agreement highlights our commitment to pursue opportunities that align strategically with our key development priorities and strengthen our pipeline."

TS-032 is a novel mGluR (metabotropic glutamate receptor) agonist that may offer a new treatment option for central nervous system disorders. Although the characteristics of mGluR are still only partly understood, mGluR is believed to play a role in the transmission of glutamate and other substances in the brain. Abnormalities in the neurotransmission through mGluR may be one cause for symptoms related to schizophrenia as well as other CNS disorders. Data show that mGluR agonists, such as TS-032, offer potential as new treatments for schizophrenia.