IP Group's Autifony Therapeutics agrees collaboration with Boehringer Ingelheim

Autifony Therapeutics, a spin-out from GlaxoSmithKline backed by IP Group, has signed a €627.5m central nervous system collaboration with German drugs giant Boehringer Ingelheim.

Boehringer Ingelheim has bought an exclusive option over certain versions of Autifony's celebrated voltage-gated potassium channel modulator platform, including one compound that is in two Phase IIb studies, including one for schizophrenia.

UK-based Autifony, which was spun-out from GSK in 2011 with investment from IP's recently acquired Touchstone Innovations, will receive a €25m upfront fee for the option to its Kv3.1/3.2 positive modulator platform, with the possibility of further payments of up to €17.5m during the option period based on achievement of short term milestones.

The total potential transaction may total €627.5m upon reaching development and pre-commercialisation milestones once Boehringer Ingelheim has exercised the option.

IP Group holds a direct undiluted beneficial stake of 26.5% in Autifony and said it was reviewing the carrying value of this asset as part of its year-end audit.

Dr Charles Large, chief executive of Autifony, said: "Autifony has pioneered the development of Kv3.1/3.2 modulators for the treatment of schizophrenia, Fragile X syndrome, and disorders of hearing. Our compounds have the potential to change the treatment paradigm for these disorders, and we welcome the opportunity to collaborate with Boehringer Ingelheim, who will bring valuable expertise and resources as we progress through the next phases of clinical and non-clinical development.

"We are also grateful for the support from Innovate UK's Biomedical Catalyst, which has enabled a highly successful collaboration between Autifony, the Universities of Manchester and Newcastle, and the Institute of Psychiatry, Psychology and Neuroscience at Kings College London."

Touchstone's Maina Bhaman said the collaboration was a "strong validation of Autifony's proprietary platform and a testament to the progress made by the team" since investing in 2011.

"The collaboration and funding will enable the company to fully explore the mechanism behind its voltage gated potassium channel modulator platform and will hopefully lead to the development of a novel therapeutic approach for the treatment of a range of CNS disorders."