Takeda Pharmaceutical and Ovid Therapeutics have entered into a development and commercialisation agreement for Takeda's investigational highly selective CH24H inhibitor, TAK-935, in rare paediatric epilepsies. Based on the terms of the agreement, Takeda has been issued an equity stake in Ovid, and will be eligible for milestone payments based on regulatory development of the candidate. The companies will equally split development and commercialisation costs, and if the candidate is commercialised will also equally share profits.

Furthermore, Takeda will be responsible for commercialisation of TAK-935 in Japan, with the option to also lead in Asia and certain other markets. Meanwhile, Ovid will be responsible for clinical development and commercialisation of the candidate in the US, Europe, Canada, and Israel. The collaboration initiatives will be guided by an integrated team from both companies, and additional central nervous system orphan disease indications could be investigated if both companies agree to pursue new uses.

The strategic partnership will enable Takeda to build on Ovid's expertise in developing drugs for rare neurological diseases.