Sage Therapeutics Inc. and Shionogi & Co. Ltd. entered a collaboration to develop and sell its experimental drug Sage-217 for treating major depressive disorder and other indications.

Under the deal, Osaka, Japan-based Shionogi will shoulder clinical development, regulatory filings and commercialization of Sage-217 in Japan, Taiwan and South Korea.

Shionogi will pay Cambridge, Mass.-based Sage $90 million up front. The latter will also be eligible to receive up to $485 million in milestone payments as well as tiered royalties on sales of Sage-217.

Further, Shionogi granted Sage certain rights to co-promote Sage-217 in Japan in all indications, while Sage maintains the exclusive rights to develop and sell Sage-217 outside of Japan, Taiwan and South Korea.

In February, Sage-217 was granted breakthrough therapy designation by the U.S. Food and Drug Administration based on data from a phase 2 study.