Biogen has reached a deal to buy a phase-2b-trial-ready schizophrenia treatment, PF-04958242, from Pfizer for up to $590 million.

According to Biogen, the drugmaker plans to start mid-stage tests on the drug, which is being developed to treat cognitive impairment associated with schizophrenia, in the latter half of the year once the deal closes as expected in the second quarter.

The purchase — which represents Biogen’s first program in the strategic emerging growth area of neuropsychiatry – will include an upfront payment of $75 million with up to $515 million in additional development and commercialization milestone payments, as well as tiered royalties

Read the press release