Servier, Cortex sign new option agreement for AMPAKINE technology

Jun 13 2011

Cortex Pharmaceuticals, Inc. (OTCBB: CORX) entered into a new agreement with Servier to sell its remaining rights to the jointly discovered high impact AMPAKINE^® compound, CX1632 (S47445). Servier, France's largest privately held pharmaceutical company, has provided an immediate, non-refundable payment of $1,000,000 to Cortex for the option to expand its rights. If Servier exercises the option to acquire sole ownership of the patent rights to CX1632 prior to October 31, 2011, it will pay Cortex an additional $2,000,000, as well as certain royalties and milestone payments to the University of California.

During the option period, Cortex and Servier remain joint owners of the patents and patent applications relating to CX1632.Cortex currently has rights to develop and market CX1632 in all of North America and selected South American countries as well as Australia and New Zealand.

On or before October 31, 2011, Servier may exercise its option to acquire sole ownership of the global patent rights to CX1632, along with a sub-license of Cortex's rights to all indications licensed from the University of California for use with CX1632. Cortex will not be entitled to any royalties or further payments from Servier's development and commercialization of CX1632. Cortex retains all rights for the remaining AMPAKINE technology on a worldwide basis.

"We are delighted that Servier has chosen to continue to invest in the AMPAKINE program," said Mark Varney, Ph.D., Cortex's President and CEO. "The high-impact AMPAKINE technology, which includes CX1632, may represent a disease-modifying approach to treating memory and cognitive impairments in patients with Alzheimer's disease and other disorders, given the demonstrated ability of the compounds to stimulate protective growth factors within the brain. Cortex is continuing to investigate both its low-impact and high-impact AMPAKINE compounds for indications in the psychiatric and neurological space."

"We are very pleased to enter into such a new agreement with Cortex. We are committed to find innovative treatments for patients suffering from Alzheimer's disease, and AMPA modulation is a promising way to improve cognitive disorders in such patients," said Emmanuel Canet, MD, Head of Servier R&D.