Pfizer and Bain Capital, a private investment firm, announced the establishment of Cerevel Therapeutics, a biotech startup that would focus on developing drugs that are proven to potentially treat disorders of the central nervous system.
Bain Capital, which specializes in private equity, venture capital, life sciences, and real estate, would provide the $350 million funding through affiliates Bain Capital Private Equity and Bain Capital Life Sciences. The investment firm committed additional funding should it be needed in the future.
Pfizer, on the other hand, would contribute a portfolio of pre-commercial neuroscience assets. The portfolio includes three drugs that are already ready for clinical trial and several others which are in the pre-trial stage. The portfolio of assets is comprised of candidate drugs that can cure Parkinson's, Alzheimer's, epilepsy, schizophrenia, and addiction.
The most advanced portfolio in Pfizer's assets is a drug for the treatment of symptoms of Parkinson's disease that is set to enter Phase III trials in 2019. Also included in the portfolio is a drug for epilepsy that is nearing Phase II.
Under the agreement, Pfizer retains a 25 percent equity position in Cerevel and two of its executives -Morris Birnbaum, Pfizer's chief scientific officer of internal medicine, and Doug Giordano, senior vice president of worldwide business development - would serve in the company's board of directors.
Adam Koppel and Chris Gordon, managing directors at Bain capital, would also take seats on the Cerevel's board.
Together, Bain Capital and Pfizer would render support in recruiting a dedicated team of scientists and life sciences executives.
Centerview Partners and Goldman Sachs served as financial advisors to Pfizer and Bain Capital respectively.
Arnold & Porter provided legal counsel for Pfizer while Ropes & Gray served as counsel for Bain capital. Price WaterhouseCooper acted as accounting advisor to Bain capital.
Bain Capital currently has $95 billion worth of assets under management. The firm has investments in IQVIA which is a big name in research, and Solid Biosciences and Dicerna Pharmaceuticals which are both biotech companies.
In January, the biotech industry assumed that Pfizer is leaving all its developments related to the neurosciences when it announced the closure of its early- and mid-stage projects in the field.
As seen in this current agreement, Pfizer may have just been pulling its strategy to another direction by cutting its in-house neuroscience projects and instead seeks a partnership for external ventures. Indeed, the pharmaceutical company has since dedicated $150 million in the venture in neurosciences companies like System 1 Biosciences Inc. and Magnolia Neurosciences Corp.
