Biotie buys option to acquire Neurelis, and opportunity for epilepsy candidate

Finland-based biotech firm Biotie Therapies (Nasdaq-OMX; BTH1V) says that it has obtained an exclusive option to acquire Neurelis, a private specialty pharmaceutical company based in San Diego, USA, focused on developing products for epilepsy and other disorders of the central nervous system (CNS).

Under the terms of the option and merger agreement, Biotie will make a payment of $1.0 million to Neurelis for the exclusive right, but not the obligation, to acquire all of the outstanding shares of Neurelis for a pre-defined amount of $8.75 million, subject to certain adjustments, to be paid in new shares of Biotie to be issued on approval by the Board of Directors. Biotie may exercise the option right up until the start of the pivotal pharmacokinetic clinical studies, which is expected in about 12-18 months' time.

Neurelis' lead product, NRL-1, is a proprietary intranasal formulation of diazepam delivered via an already marketed nasal sprayer. It is being developed to help patients with epilepsy who require intermittent use of diazepam to manage bouts of acute and repetitive seizures.