Neurobiological Tech (NTII) Message Board

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Biotech / Medical : Neurobiological Tech (NTII)

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Jan 9 9:30 AM EST

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To: BRAVEHEART who wrote (414)	1/5/1999 2:47:00 AM
From: BRAVEHEART	Read Replies (1) of 1494

Hi Gang, I realize there are many who read the SI thread who do not have access to ask specific questions. If you have any questions which I can try and answer please feel free to E-mail me at Braveheart@hotmail.com. I received several E-mails over the past few days. Here is the first, with my responses to the best of my knowledge. Hi gregory, Here is my latest summary on NTII. It does not include all my expectations but it does give a decent overview of the companies many positives. I think you'll find the market size for peripheral neuropathies rather large. Heck Diabetic alone is of blockbuster proportions. Keep in mind there are other neuropathy products in development. In fact four others come to mind. The biggest difference is Memantine has proven pathways and a seven year treatment history for another indication. Also Quintiles has considerable clinical experience with the product. This is extremely valuable in designing clinicals to prove successful. Also the massive ( 5 million dollars ) data ( from essentially three separate Memantine trials which have advanced to P-3 testing successfully for two other indications ) MERZ has made available to NTII for it's inclusion in it's future submissions to the FDA for consideration is a real plus. Message 7069713 1) Exactly what kind of arrangement does NTII have with MERZ regarding memantine???? The MERZ & NTII relationship is essentially two fold. They share patent rights to avoid conflict in either country for their intended indications. NTII receives use of clinical data in it's submissions to the FDA. MERZ & NTI will seek a joint collaboration with Big Pharma for Marketing & Distribution of Memantine for it's many indications. There is some sharing of revenues but essentially each company will receive it's proportion based upon the companies targeted indications. There isn't a word to describe the market size for the many indications rolled up into one. Blockbuster does come up short. Sure there are a few large pharmas working on Neuropathies. I'm almost certain there are a few pipeline starved ones who are eager for such a partnering. I said it before. The question is not if but how big a deal will ultimately be cut. 2) The company is quite low on capital...using the current burn rate when do you expect the cash to run out????? Never ( semi joking )...The last time the company needed cash ( funny thing just before the MERZ deal ) they did an in-house financing. Insiders and existing shareholders essentially came up with about $50,000 apiece and purchased newly issued shares. I would not be surprised if before a big pharma partnering we don't see some sort of similar creative financing given the length of time required to work out the right terms with the right company. With only 7.5 million shares outstanding a little dilution like this would not be unfavorable given the product potential. Actually I would expect such financing to be by long term holders as was the case with the former financing. In fact most companies would salivate to be in such a position ( Few shares outstanding ) with late stage clinicals ongoing. biz.yahoo.com { There were actually another $350,000 which does not show up as insiders } 3) I believe I read that NTII has Memantine in 2 different phase II studies in the U.S. when are the results expected?? What indications are being examined???? The two indications include. Peripheral Neuropathies and AIDS related dementia ( keep in mind there is no existing effective treatment for either indication ). While Diabetic Neuropathies have several products competing in advanced clinicals the market is huge. The market for AIDS related Dementia is wide open. I don't believe there is any other product in clinicals testing for this indication. While the market is smaller the likelihood for success is relatively high. MERZ has had remarkable success with Memantine for Alzhimers related Dementia. Compliments Dr. John M. de Castro: The URL for the Merz site is merz.com There is also a technical presentation on Memantine at the site at memantine.com 4) What do sales of memantine look like overseas??? I'm not sure on the direction of this question. Memantine does have a treatment history in Europe. However NTI does not have rights to said markets. I'm sure NTI will attempt to advance Memantine in Europe down the road at some point. I'm also confident that the MERZ presence in Europe and it's extensive trials will go a long way in assisting NTI in doing so successfully. 5) What have you heard concerning partnership with big pharma???? Some general stuff from the SEC doc's & annual reports. Basic generalized comments on the approach by both MERZ & NTII. " I anticipate three potential sources of funding in 1999. The first...up front payments if MERZ & NTI are able to conclude a Memantine marketing agreement with a large pharmaceutical company. This could be substantial. The second would be through an infusion of capital through a private placement." Paul E. Freiman CEO Sept 28, 1998 The third is through potential grant monies in developing Xiracept under the Orphan drug designation... I will add it is nice to read such statements when originating from a highly respected and well connected CEO like Paul Freiman. Also the typical rumored stuff. Like back in Aug when Dec was given as a target date to have lined up some potential partners. If this has been accomplished I would expect something in the next three months. Typically such Rumors take about a year plus if coming along with pre-clinicals. Around 9 months during advanced clinicals. Just from experience. I set Dec as my target date to accumulate my position by based on this theory. Along with some speculations. MERZ is well into P-3 testing ( three separate P-3 trials ). Their targeted market here and in Europe is quiet large. Estimates suggest it is between 6 and 9 million patients. NTII is into P-2 for two separate Memantine indications which comprise a market size of approximately 3 million patients. I cannot see how this potential will go unpartnered. I cannot see how the collaboration will be anything less than huge. There is considerable leverage in this MERZ/NTI effort. Given the clinical results I seriously doubt Big Pharma will drag their feet on this one. Heck if they wait beyond added clinical results ( as if they needed more ) it will only cost them more. Thank you for your time and hope you had a merry Christmas and happy new year... My pleasure, Jeffrey

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