Acadia Pharmaceuticals Inc, a biopharmaceutical company, has signed up a deal with a unit of Canada-based Biovail Corp in order to co-develop and market its experimental drug, ‘Pimavanserin’ to treat Parkinson’s disease psychosis (PDP) in the United States and Canada.

Biovail will co-develop and sell the drug in the U.S. and Canada, whereas Acadia holds full rights to the drug in the remaining world.

As per the agreement, Acadia could get around $395 million, which comprises an upfront cash payment of $30 million, around $160 million in potential milestone payments for clinical examinations, regulatory submissions and authorizations, and up to $45 million in potential milestones for the expansion of the drug's usage.

Moreover, Acadia is also entitled to get up to $160 million in potential milestones as certain sales targets are achieved.

Besides product royalties, Acadia has the opportunity to co-promote pimavanserin in the United States.

At present, Pimavanserin is being studied in a late-stage examination for the treatment of PDP.