AbbVie has entered a collaboration with Hungary-based pharmaceutical company Gedeon Richter to develop new treatments for neuropsychiatric conditions.

The agreement focuses on discovering, co-developing and licensing new targets to address these conditions.

The partnership leverages almost two decades of successful collaboration on central nervous system projects. It has already led to the delivery of products such as cariprazine (VRAYLAR/REAGILA) and the development of the investigational drug candidate ABBV-932, aimed at treating bipolar depression and generalised anxiety disorder.

VRAYLAR is a prescription therapy designed to work alongside antidepressants in adults, treating major depressive disorder, manic or mixed episodes associated with bipolar I disorder, and schizophrenia.

The new agreement's terms include preclinical and clinical research and development activities, with costs shared by both parties.

Richter will receive a $25m upfront cash payment, with potential additional future payments tied to development, regulatory and commercial milestones.

The company is eligible to receive royalties based on sales.

AbbVie discovery research senior vice-president and global head Jonathon Sedgwick stated: "There remains a large unmet need for people living with neuropsychiatric disorders, making it imperative that we continue to innovate and pursue novel targets and approaches to discover and develop new therapies.

"We are excited to expand our longstanding and successful partnership with Richter to help address the complex needs of these patients."

While AbbVie will hold commercialisation rights worldwide, Richter retains rights within its traditional markets, including geographic Europe, Russia, other Commonwealth of Independent States (CIS) countries and Vietnam.

Gedeon Richter CEO Gábor Orbán said: "This new agreement builds on years of successful partnership allowing Richter to further support AbbVie's global ambition in neuropsychiatry and validates the quality of science behind our unique discovery platform.”

The US Food and Drug Administration (FDA) recently approved AbbVie‘s VYALEV (foscarbidopa and foslevodopa) to treat motor fluctuations in adults with advanced Parkinson’s disease.