Cortex reacquires all Ampakine compounds, IP and rights from Valeant; cuts loss

California, USA-based neuroscience company Cortex Pharmaceuticals (OTCBB: CORX.OB)) has entered into an agreement with Biovail Laboratories International, a wholly-owned subsidiary of Canada’s Valeant Pharmaceuticals International (TSX: VRX), to regain the Ampakine assets and rights related to respiratory depression.

As part of a re-evaluation of its research priorities, last fall US drugs giant Merck & Co (NYSE: MRK) returned worldwide rights to develop and commercialize Ampakine compounds for the treatment of schizophrenia and depression to Cortex (The Pharma Letter October 5, 2010).

Under the new agreement, Cortex will pay an upfront $200,000 to Biovail, and potential future payments of up to $15.15 million based on the achievement of certain development and New Drug Application submission and approval milestones. Biovail is also eligible to receive additional payments based on Cortex’ net sales of an intravenous dosage form of the compounds for respiratory depression up to a maximum of $15 million. In addition, at any time following completion of Phase I clinical trials and prior to the end of Phase IIa studies, Biovail retains an option to co-develop and co-market intravenous dosage forms of an Ampakine compound as a treatment for respiratory depression.