As per the agreement, Neuralstem will allow SPI to market the development and licensing rights to its neurogenic compound NSI-189.
NSI-189, indicated as a treatment for major depression and other psychiatric disorders, currently is in a Phase Ia trial to investigate its safety and maximum tolerated dose in healthy volunteers.
The program has received significant support from both the Defense Advanced Research Projects Agency (DARPA) and the National Institutes of Health (NIH).
Phase Ib will test the safety and tolerability of the drug in patients with major depression.
Neuralstem president and CEO Richard Garr said they have stated previously their intention to take NSI-189 through Phase II trials before seeking a partner for worldwide rights.
"The single exception to this strategy is the Japanese market, where we are aggressively seeking an early-stage development and licensing partner," Garr said.