This is actually an interesting valuation issue (IMHO). The fact is, Big Pharma had consistently deemed CX516 to not be a viable drug candidate due to the dosing issues--even back in 1998. The decision to continue CX516 as the flagship was, in retrospect, ill-advised. But that's not what I am going after here. The valuation issue has to do with a stunningly wideranging patent position held by Cortex. Yes, the lead compound is unlikely to ever go anywhere meaningful, but :
1)Lilly has their Ampakine in Phase II for Alzheimer's, 2)Servier is starting a Phase II for their S18986 in AD, 3)Organon has some positive PhII data for Org24448 (nee' CX691) in schizophrenia, and is continuing with larger Phase IIs. Of those three, only Organon has a license to develop their compound to commercialization, and will pay milestones and royalties (subpar, unfortunately) to Cortex. Lilly and Servier cannot take their molecules anywhere other than Japan (for any disorders involving cognition--AD, MCI, ADHD, PD) without getting a license from Cortex. Lilly could try to again (their first attempt failed) challenge the about -to -issue Euro patent, their opportunity to challenge the US patent is well past.
Offhand,I cannot think of another neuro-context where a company's valuation is so entrenched in their control over the fates of molecules being developed by other companies. Hopefully the MOMOs will think about that too.
Harry
NeuroInvestment |
