Tetra, Shionogi ink $40M pact on PDE4 drug for Alzheimer’s, fragile X

Tetra Discovery Partners is teaming up with Shionogi to advance its PDE4-targeting drug in Alzheimer’s disease and fragile X syndrome. In return for the rights to the drug in three Asian countries, Shionogi will hand over a $5 million upfront payment and $35 million in equity. If all goes well, Tetra could also earn up to $120 million in development and commercial milestones.
The $40 million will allow Grand Rapids, Michigan-based Tetra to complete an ongoing phase 2 trial in fragile X and to kick off another phase 2 trial in early Alzheimer’s disease early next year. The candidate, BPN14770, nicknamed ‘770, is a selective allosteric inhibitor of the enzyme phosphodiesterase-4D, or PDE4D. Tetra is also developing it for brain disorders characterized by cognitive and memory deficits including dementias, schizophrenia, major depression, and learning disabilities.
“’770 modulates a pathway that’s needed both for the maturation of connections between neurons and the stabilization and preservation of connections between neurons,” said Tetra CEO Mark Gurney, Ph.D. This is useful in fragile X, a condition in which a part of the neuron called dendritic spines fails to mature. As for Alzheimer’s, Gurney said, animal models have shown that ‘770 protects dendritic spines that otherwise would be destroyed by the disease process.