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news.Neurobiological Technologies is to sell the rights to its investigational brain tumor swelling drug Xerecept to a subsidiary of Celtic Pharma Holdings for $33 million, with a further $15 million payable upon the achievement of regulatory objectives.
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The drug is currently in phase III clinical trials as a treatment for peritumoral edema, or swelling associated with brain tumors.
Neurobiological Technologies (NTI) is also eligible to receive profit-sharing payments on sales of Xerecept in the US, if the product receives regulatory approval, and royalties on any sales elsewhere in the world.
Celtic Pharma’s subsidiary will assume responsibility for product development and pay all product development expenses. NTI will provide services relating to the current clinical trials of Xerecept.
Paul Freiman, president and CEO of Neurobiological said, “We believe that this is an exciting opportunity for a product candidate that we have worked diligently to bring to this stage of clinical development. If the ongoing trials are successful, brain cancer patients around the world will have access to a useful product in reducing the debilitating swelling around their tumors.”
In April 1998, Xerecept received orphan drug designation for peritumoral edema from the FDA.