ALKERMES AND CORTEX TO COLLABORATE ON STROKE TREATMENT
ALKERMES AND CORTEX TO COLLABORATE ON STROKE TREATMENT CAMBRIDGE, Mass., Jan. 7 /PRNewswire/ -- Alkermes, Inc.
(NASDAQ: ALKS) and Cortex Pharmaceuticals, Inc. (NASDAQ: CORX) today announced an agreement to collaborate on the development of enzyme inhibitors which may be useful in treating stroke and other acute degenerative disorders of the brain. The agreement could provide Cortex with up to $26.5 million in payments over a multi-year period, subject to certain future events.
Alkermes will provide research and development funding to Cortex for a two-year period in an aggregate amount of $4.5 million. Research funding may be extended by mutual agreement. As product candidates proceed through clinical trials, Cortex will receive up to $10 million in milestone payments tied to clinical testing and regulatory review events. The agreement gives Alkermes a worldwide, exclusive license to manufacture and market any products resulting from the collaboration. Cortex will receive a royalty on product sales. In a related transaction, Alkermes purchased 750,000 shares of common stock from Cortex for $1.5 million and warrants to purchase an additional two million shares of common stock, one million shares at $3 and one million shares at $7.50. The collaboration will focus on three classes of enzyme inhibitors, discovered by Cortex, which block the action of calpain -- an enzyme thought to be responsible for the destruction of nerve cells in a wide range of disorders. In animal studies these inhibitors protected brain cells from the deterioration that normally accompanies stroke. In the United States, 500,000 persons suffer a stroke each year. It is the leading cause of disability in adults and the third leading cause of death from disease. According to Alkermes President and Chief Executive Officer Richard F. Pops, the joint effort combines Cortex's "excellent science" with Alkermes' product development strengths and blood-brain barrier expertise. "The agreement helps to build Alkermes' product portfolio with the addition of a well-advanced product candidate of significant market potential," Pops said. Jay Glass, Ph.D., Cortex president and chief executive officer, said, "Alkermes has proven it can move a product quickly from research into clinical trials. This collaboration leverages that capability and Cortex's leadership position in calpain research for the benefit of both companies." Cortex, a leading-edge neurological drug discovery company, is developing products for the treatment and diagnosis of age-related diseases and disorders of the brain. Cortex has established a strong proprietary position in the field of calpain inhibition and has filed several world-wide patent applications. Alkermes, Inc. is a neuropharmaceutical company founded in 1987 that is focused on the development and commercialization of therapeutic and diagnostic products for the treatment of disorders of the central nervous system. -0- 1/7/92 /CONTACT: Richard F. Pops, president and chief executive officer of Alkermes, 617-494-0171; or Jay Glass, Ph.D., president and chief executive officer of Cortex Pharmaceuticals, 714-727-3157; or Thomas A. Pearson of Pearson Communications, 215-648-3975, for Alkermes/ (ALKS CORX) CO: Alkermes, Inc.; Cortex Pharmaceuticals, Inc. ST: Massachusetts, California IN: MTC SU:
SH-PB -- NE009 -- 7491 01/07/92 17:10 EST
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|Date:||Jan 7, 1992|
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