Pfizer sells neurology drug to Biogen in nearly $600M deal: 4 things to know

Biogen shared plans Monday to buy Pfizer's experimental neurology drug in a deal worth up to $590 million, reports Reuters.

Here are four things to know about the deal.

1. Pfizer is developing the experimental drug to treat a cognitive impairment associated with schizophrenia. The drug aims to connect signals in the central nervous system previously disrupted by the mental disorder.

2. Through the deal, Biogen would give Pfizer $75 million in an upfront payment, along with up to $515 million in development and commercialization milestone payments. Biogen also agreed to give Pfizer royalties for the drug.

3. The deal, expected to close in the second quarter of this year, marks Biogen's entrance into the neuropsychiatry market.

4. Biogen will start midstage tests of the drug in the second half of 2018.

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