Vernalis will pay an initial consideration of $29.5 million, payable in Vernalis shares and assume certain of Cita’s liabilities. Vernalis may also pay up to a further $35 million in either shares or cash dependent upon achieving certain milestones in respect of the development of Cita’s clinical drug candidates CNP1512 and CNP3381.
Based on clinical evidence, CNP1512 may reduce the periods of time patients suffer from the debilitating effects of Parkinson’s disease, as well as providing a more effective method of delivering the drug. CNP1512 is expected to start phase III trials in the second half of 2006.
CNP3381 is being developed for neuropathic pain. It is believed the drug may have the ability to reduce both pain signal transmission and the conscious perception of pain without many of the limitations and side effects of existing treatments. The drug has undergone preclinical and clinical studies in which it was determined to be safe and well-tolerated.
“This, in addition to the recent acquisition of Apokyn for the treatment of Parkinson’s disease, gives the company a broadened portfolio of products on the market and in clinical development and is a major step forward in Vernalis’ strategy to become a self funded CNS focused company,” said Simon Sturge, CEO of Vernalis.