On Friday September 30,2011 an announcement made by Intellect Neurosciences, Inc. (PINK:ILNS), which is a Manhattan based biopharmaceutical company concerned with the development of disease-modifying therapeutic agent targeting Alzheimer’s disease and other serious neurodegenerative diseases, revealed that it has handed out an exclusive license to ViroPharma relating to its licensed patents and patent applications concerned with its clinical stage drug candidate, OX1, a multimodal, metal-binding, extremely potent antioxidant molecule, having the potential to protect nerve cells from highly oxidizing neurotoxins.
In the purview of the agreement, ViroPharma intends to develop and commercialize OX1 targeted to cure Friedreich’s Ataxia and other probable diseases for which OX1 may be ratified for orphan drug designation.
In accordance to the terms and conditions of the Exclusive License Agreement, Intellect has agreed to transfer all of its intellectual property rights, data and know-how related to its OX1 research and development program to ViroPharma. On the other hand, a sum of $6.5 million is agreed to be paid in exchange by Viropharma as licensing fee. It has further agreed to make payment for additional milestones based upon defined events, the maximum of which is estimated to be around $120 million, assuming its successful projection to the market. In addition, ViroPharma is mandated to pay a tiered royalty of up to a maximum of low double digits based on annual net sales.
Since its inception by the scientists at NYU Medical School and University of South Alabama in the late 1990s, Dr. Daniel Chain, Intellect’s Chairman and CEO, has spearheaded the development of OX1. The company has recently announced the completion of Phase 1 clinical trials for OX1. The universities, which own certain patents in relation to OX1, are entitled to a portion of revenues received by Intellect from any sale or license of OX1 subjected to an exclusive license agreement between Intellect Neurosciences and the universities.
Dr. Daniel Chain expressed, on behalf of the company their contentment about strategic tie-up with ViroPharma, whose considerable resources, drug development capabilities and orphan drug marketing expertise has the caliber to leverage the development and commercialization of OX1. This transaction is the first for Intellect related to an internally developed compound. It aligns with their business strategy to create high value assets that can generate revenues to support further development of drugs providing treatments for life-threatening conditions.
Shares of ILNS fell 15.20% to $0.0760 with more than 194K shares exchanged hands. On Friday, the stock soared 30% during the intraday session, but ended lower by 40%.
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