Roche Inks Pact With Prothena for Parkinson’s Treatment

By Dow Jones Business News, December 11, 2013, 05:05:00 PM EDT

Roche Holding AG (ROG.VX) has entered a pact with Prothena Corp. PLC ( PRTA ) to develop and commercialize a treatment the clinical-stage biotechnology firm is developing for Parkinson's disease.

Prothena, which generates almost no revenue, has a portfolio of three therapeutic antibody programs, including one for the treatment of Parkinson's disease, which has no cure. The product candidates have yet to reach Phase 2 development.

As part of the collaboration with Swiss-based Roche, Prothena will receive up to $600 million, inclusive of upfront payment and near-term clinical milestone totaling $45 million, as well as 30% of U.S. profits and up to double-digit royalties on net sales outside the U.S.

A majority of the potential payments to Prothena are linked to achievements of development, regulatory and first commercial sales milestones. As part of the agreement, Roche and Prothena are initiating a research collaboration.

Parkinson's disease is a progressive disorder of the nervous system that affects movement. In early stages, an individual's face may show little or no expression and speech may become soft or slurred. The disease's symptoms worsen over time.

Shares of Prothena, unchanged in after-hours trading, have more than tripled this year.

Write to John Kell at john.kell@wsj.com

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Roche Inks Pact With Prothena for Parkinson's Treatment