Alseres and BioAxone amend licensing agreement

The amendment replaces all of the pre-commercial financial and performance-related milestones contained in the Cethrin license with a formula-based approach to sharing any and all income generated under a sub-license. The amendment provides that the company will use reasonable commercial efforts to enter into a sub-license agreement for the compounds and technology covered by the Cethrin license.

In the event that the company fails to sub-license its rights under the Cethrin license within a specified time period, the company retains a right to receive a smaller portion of any license revenue that BioAxone generates after the Cethrin license, as amended, terminates. The amendment also provides for the mutual release of claims that each party had previously alleged against the other under the Cethrin license.

Peter Savas, chairman and CEO of Alseres, said: “We are pleased with the amended agreement with BioAxone. With our recent progress with Altropane and our Phase III molecular imaging program, a significant portion of our resources must be devoted to completing pivotal clinical trials, getting FDA approval and establishing manufacturing and commercialization partnerships for Altropane.

“In the current environment, we believe that finding a strong development and commercialization partner for Cethrin is the best path forward to ensure that it is developed in a focused, efficient manner while Alseres concentrates on advancing Altropane toward market approval in the US. The amended agreement enables Alseres and BioAxone to work together on this partnering effort without the distraction of an arbitration procedure.”