BLS acquires AMPAKINE compounds from Cortex Pharmaceuticals

Mar 26 2010

Biovail Corporation (NYSE, TSX: BVF) today announced that its subsidiary, Biovail Laboratories International SRL (BLS), has acquired certain AMPAKINE® compounds, including associated intellectual property, from Cortex Pharmaceuticals, Inc. (Cortex) for use in the field of respiratory depression, a brain-mediated breathing disorder. The acquired compounds include the Phase 2 compound CX717, the preclinical compounds CX1763 and CX1942, and the injectable dosage form of CX1739. As part of the acquisition transaction, BLS has also entered into a field limited license agreement with The Regents of the University of California.

“This acquisition, our eighth transaction since we launched our specialty CNS strategy, adds another promising compound to our emerging development pipeline”

“This acquisition, our eighth transaction since we launched our specialty CNS strategy, adds another promising compound to our emerging development pipeline,” said Bill Wells, Biovail’s Chief Executive Officer. “CX717 has the potential to address a significant unmet medical need, and would fit nicely with the Hospital sales force we intend to deploy for Staccato® loxapine.”

Under the terms of the asset purchase agreement, BLS has paid an upfront fee of $9 million, expects to pay an additional $1 million upon the completion of a transition period, and could pay up to $15 million in potential milestones contingent on the successful demonstration of the utility of an intravenous formulation of CX717 in treating respiratory depression, the successful completion of a Phase 3 clinical program using an AMPAKINE® compound and approval from the U.S. Food and Drug Administration (FDA). BLS may also owe certain development milestones and/or low single-digit royalties on net sales to third parties.