The devil's in the details, they give up exclusive rights to smaller indications but will now share in larger ones. The question is how?
here's the full report.
NEUROBIOLOGICAL TECHNOLOGIES, INC.
FORMS MEMANTINE COLLABORATION AND MARKETING ALLIANCE WITH MERZ + CO.
GMBH & CO. AND REVENUE SHARING PARTNERSHIP WITH CHILDREN'S MEDICAL
CENTER CORPORATION IN BOSTON, MASSACHUSETTS
Richmond, California, April 16, 1998-- Neurobiological Technologies,
Inc. (OTC-BB symbol: NTII) today announced a strategic research and
marketing alliance with Merz + Co. GmbH & Co. of Frankfurt, Germany
and a new revenue sharing partnership with the Children's Medical
Center Corporation of Boston, Massachusetts, to further the
development and commercialization of Memantine, an orally-available
neuroprotective agent.
Paul E. Freiman, CEO of NTI stated, "This research collaboration and
revenue sharing alliance is the most significant milestone yet for
NTI, since we have just completed our Phase IIA neuropathic pain trial
and are initiating a Phase IIB trial, as well as running a Phase II
trial for AIDS-related dementia. Merz is supplying us with an
important infusion of capital so that a potentially important product
reaches patients in need in a collaborative way." Mr. Freiman further
stated, "Under this new collaboration Children's Medical Center
Corporation will terminate its existing license to NTI for
AIDS-related dementia and neuropathic pain and grant exclusive rights
to Merz. In exchange NTI will receive an up-front payment of $2.1
million from Merz. NTI and Children's Medical Center Corporation will
now share in the revenues received from Memantine for neuropathic pain
and AIDS dementia, as well as for dementia and Alzheimer's,
indications for which Merz has been developing." Mr. Freiman
continued, "The Merz investment plus the $550,000 we recently raised
from a group of existing investors places our company in a much
sounder financial position."
Merz, a German pharmaceutical company, has marketed Memantine in
Germany since 1989 as a treatment for dementia. Merz is also
currently conducting a series of advanced clinical trials for dementia
and Alzheimer's disease. Dr. Jochen Hckmann of Merz + Co. stated
that, "Memantine could most successfully be developed and
commercialized if the two companies and Children's Medical Center
Corporation share their clinical data, their commercial and scientific
expertise, and their patient population interests." Merz has
completed one pivotal Phase III trial in dementia in Europe, has two
Phase III trials in process and will institute a U.S. trial in Phase
III in the near future. Merz has developed extensive clinical and
pre-clinical data which, in combination with NTI's clinical data, the
companies believe would constitute a sound regulatory package.
Dr. Hckmann and Mr. Freiman jointly stated that they each "personally
look forward to working together with our new colleagues at Merz, NTI,
and Children's Medical Center Corporation so that we can help patients
in need. Since the respective clinical development programs are very
much on track, the companies will now work jointly to help select the
best global marketing partner for Memantine. Both Merz's long history
in Europe and its worldwide contact with opinion leaders in dementia
and Mr. Freiman's experience as former CEO of Syntex and Chairman of
the Pharmaceutical Research and Manufacturer's Association (PhRMA)
should allow us to leverage our contacts into a major partnership.
Merz and NTI can both unequivocally state that Alzheimer's and
dementia are amongst the fastest growing disease states worldwide, and
that the market is vastly underserved by existing therapy. This is
also true of diabetic neuropathy, where the quality of life is at
risk. There is a great opportunity to do good and, at the same time,
provide collaborative scientific acumen and future revenues to NTI,
Merz and Children's Medical Center Corporation."
Memantine is an orally-available compound which acts to modulate the
N-methyl-D aspartate (NMDA) receptor in the central nervous system.
Modulating the NMDA receptor may protect against the neuronal injury
associated with a number of neurological conditions, including
dementia, Alzheimer's disease and neuropathic pain. There are
currently no neuroprotective treatments approved for any of the
pathologies associated with NMDA-receptor overstimulation.
NTI is an emerging drug development company focused on the clinical
testing of potential therapeutic products based on advances in
neuroscience research. The company's strategy is to in-license early
stage products that have the potential to preserve neurological
function. In addition to developing Memantine, NTI is evaluating
Xerecept„ as a potential treatment for peritumoral brain edema
(swelling of brain tissue caused by a tumor). NTI is seeking to
out-license Dynorphin A, another human peptide previously tested as an
analgesic agent.
Merz is a multinational independent company with a strong research
focus on the central nervous system and metabolic diseases. Founded
in 1908, it has established itself in the fields of prescription and
OTC drugs on a global basis.
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve risk and uncertainties, including the ability to identify,
successfully develop and commercialize safe and effective products;
dependence upon third parties; liquidity and capital resources; and
other risk factors detailed in the Company's filings with the SEC.
Actual outcomes may differ materially from those projected. These
forward-looking statements represent the Company's judgment as of the
date of this release. The Company disclaims, however, any intent or
obligation to update these forward-looking statements.
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