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Biotech / Medical : Neurobiological Tech (NTII) -- Ignore unavailable to you. Want to Upgrade?

To: John Dwyer who wrote (320)	4/16/1998 11:46:00 PM
From: Doug Markle	Read Replies (1) \| Respond to of 1494

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. ###