Neurocrine Biosciences Inc NBIX has outlined a deal that provides Sosei Heptares Corporation $100 million upfront, R&D expenses, and a motherlode of milestones worth up to $2.6 billion if successful. 

• Under the terms of the agreement, Neurocrine Biosciences gains development and commercialization rights to muscarinic receptor agonists for schizophrenia, dementia, and other neuropsychiatric disorders.
• The most advanced program, HTL-0016878, is a selective M4 agonist. Neurocrine Biosciences plans to submit an Investigational New Drug (IND) application and initiate a Phase 2 study for schizophrenia in 2022.
• Under the pact, Sosei Heptares retains the rights to develop M1 agonists in Japan, while Neurocrine nabs co-development and profit share options.
• Muscarinic receptors are crucial to brain function and are researched in drug targets in psychosis and cognitive disorders.
• Price Action: NBIX shares are down 0.66% at $85.45 during the market session on the last check Monday.