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news.Alseres Pharmaceuticals has announced an agreement with BioAxone Therapeutic of Montreal, Canada, whereby, upon payment by Alseres of an option fee of $7 million on or before October 27, 2008, Alseres may exercise an option to amend the company's Cethrin license agreement.
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Pursuant to the option agreement, the pre-commercial milestone payments in the amended license agreement will be reduced from $25 million to $7 million payable on or before December 31, 2009.
In addition, the sales-based royalties in the amended license agreement will be reduced from 10-12% to 4% for spinal cord injury and 1% for all other indications. Finally, the amended license agreement will eliminate all development milestones related to Cethrin.
Peter Savas, chairman and CEO of Alseres, said: “In addition to reducing the future cash burdens of the license, we believe that the reduction in our future royalty obligations will allow us to more freely explore worldwide collaboration and partnership opportunities not only in spinal cord injury but also possibly in other indications like bone repair, oncology, cardiomyopathy and eye disease.”