Neurobiological Technologies Announces Amendment of License and Cooperation Agreement with Merz Pharmaceuticals and Childrens' H
February 26 2008 - 7:00AM
PR Newswire (US)
EMERYVILLE, Calif., Feb. 26 /PRNewswire-FirstCall/ --
Neurobiological Technologies, Inc. (NTI(R)) (NASDAQ:NTII), today
announced the amendment of its license and cooperation agreement
with Merz Pharmaceuticals GmbH (Merz) and Childrens' Medical Center
Corporation ("CMCC") relating to memantine, which is currently
marketed in the United States as Namenda(TM) and in Europe as
Ebixa(TM). The amendment modifies the terms of the royalties to be
paid to the company on sales of memantine, including discontinuing
the payment of royalties on sales of memantine for Alzheimer's
disease outside of the United States beginning in the fourth
quarter of 2007 (for which the company is due to receive a royalty
payment in April 2008) and providing for a staged reduction in the
royalty rates to be paid to the company and CMCC on sales of
memantine in the United States beginning in the third quarter of
2008. In addition, the amendment provides that neither CMCC nor
Merz will give notice of termination of the agreement under the
section relating to the development of memantine for the CMCC
indications before July 1, 2009 or to be effective before January
1, 2010. "We felt it was important to agree to this amendment to
reduce the uncertainty relating to ability of Merz and CMCC to
terminate the agreement on six months' notice and to give us
greater assurance that we will continue to receive royalty payments
on US sales of memantine for at least the next two years, which
will be a critical period for our company as we complete our
pivotal phase 3 clinical trials of Viprinex(TM) for ischemic
stroke," said Paul E. Freiman, President and CEO of Neurobiological
Technologies. "As we effectively receive our payments two quarters
after the memantine sales are made, this means that we should
receive royalty payments from Merz, albeit at reduced rates, until
the second quarter of 2010." The company also announced that, in
connection with entering into the amendment, it had received the
payment from Merz due on January 30, 2008 of the royalties on sales
of memantine in the third quarter of 2007 in the amount of
$2,161,228. About Neurobiological Technologies, Inc. NTI is a
biopharmaceutical company focused on developing novel agents for
central nervous system conditions. The Company's most advanced
product candidate is Viprinex(TM) (ancrod), a novel multi-targeted
agent currently undergoing pivotal Phase 3 clinical testing for the
potential treatment of acute ischemic stroke, one of the most
prevalent, debilitating and costly diseases in the world for which
there are few acceptable treatment options. Forward-Looking
Statements Except for the historical information contained herein,
the matters discussed in this press release are forward-looking
statements that involve risks and uncertainties, including: our
dependence on Merz and its marketing partners and other risks
detailed from time to time in our Annual Report of Form 10-K and
other filings with the Securities and Exchange Commission. Actual
results may differ materially from those projected. These
forward-looking statements represent our judgment as of the date of
the release. We undertake no obligation to update these
forward-looking statements. DATASOURCE: Neurobiological
Technologies, Inc. CONTACT: Paul E. Freiman, President and CEO of
Neurobiological Technologies, Inc., +1-510-595-6000 Web site:
http://www.ntii.com/
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