12:17 PM EDT, 10/24/2024 (MT Newswires) -- AbbVie ( ABBV ) and Gedeon Richter said Thursday that they have entered a new collaboration to discover and develop new treatments for neuropsychiatric conditions.

The companies said their discovery, co-development, and license agreement covers preclinical and clinical research and development activities, with both parties sharing the financing.

Richter will receive an upfront payment of $25 million as well as potential future payments tied to development, regulatory, and commercialization milestones, and royalties based on sales, while AbbVie ( ABBV ) will have worldwide rights for commercialization, except in Richter's traditional markets, according to a joint statement.

The companies said this new deal builds on their nearly 20 years of partnership on central nervous system projects, which include products like cariprazine and ABBV-932 for bipolar depression and generalized anxiety disorder.

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