Tuesday, May 6, 2008

Alseres could cut milestone obligation for nerve cell drug by up to $18M

By Mass High Tech

Alseres Pharmaceuticals Inc. has received an option to amend its license to spinal cord-injury treatment Cethrin from BioAxone Therapeutic Inc., potentially reducing Alseres' milestone fees to BioAxone from $25 million to $7 million.

Hopkinton-based Alseres (Nasdaq: ALSE) has until Oct. 28 to pay BioAxone of Montreal a $7 million option fee, which would reduce its milestone obligations related to Cethrin from $25 million to $7 million, to be paid by Dec. 31, 2009 or sooner, according to the life sciences firms. Also, the amended deal would lower royalties owed to BioAxone on sales of Cethrin from up to 12 percent to 4 percent as a spinal cord-injury treatment and 1 percent for other uses.

Cethrin is a protein drug designed to aid in the regrowth of axons that carry signals from nerve cells. The drug is in Phase 1/2a clinical trials as a treatment for patients with recent spinal cord injuries, according to Alseres. The U.S. Food and Drug Administration has designated the treatment as an Orphan Drug, which gives the drug seven years of market exclusivity if approved by the agency.

Alseres, which is focused on developing drugs for central nervous system conditions, reported a 2007 net loss of $19.6 million with no revenue. The firm employs 25 workers.