Early and mid-staged neuroscience is in big trouble as Pfizer decides to shut down its drug manufacturing medicines in this area. This has always been a pain area for drug manufacturers and the back step from Pfizer is another blow to the market. Neurodrugs affected due to this decision are mainly the medicine for Alzheimer’s, Parkinson’s and Lou Gehrig diseases.
Pfizer has informed that it will not be pulling out all its money from this domain. The pharmaceutical giant is actually in the process of coordinating with Bain Capital firm to create a new organization. This new company will be engaged only in neuroscience development and Bain has agreed to provide $350 million into it. The company has been named as Cerevel Therapeutics. However, the Bain said that it can consider funding even more money.
The word is coined from “Cerebral Revelation.” The new organization will start within 10 projects in neuroscience from Pfizer. 3 projects of these 10 are already in trial. 2 high profile executives from Pfizer, Doug Giordano (who is the senior Vice President of the worldwide business development) and Morris Birnbaum (who is at present the chief scientific officer of internal medicine) will be joining the new company as directors. From Bain Capital, Koppel and Chris Gordon who at present functions as the managing directors for Bain Capital Private Equity have decided to join the new organization. While Bain Capital will have most of the stakes of this new firm, Pfizer will have only 25% of the shares.
The primary project of the firm will be one in drugs for Parkinson’s disease. This project will be trial tested at the later months of the next year. Another project on the go is for epilepsy medicine. The other medicines will be targeted towards Alzheimer’s disease, addictions and schizophrenia. The company will be based at Boston.