Recently, Cortex has received $1,000,000 from Servier for the option to expand its rights for CX1632.
As per the terms of the agreement, if Servier exercises the option to acquire sole ownership of the patent rights to CX1632 before 31 October 2011, Cortex will be eligible to get an additional $2,000,000 including certain royalties and milestone payments to the University of California.
During the option period, both the companies remain joint owners of the patents and patent applications relating to CX1632.
Currently, Cortex has development and marketing rights of CX1632 in all of North America and selected South American countries as well as Australia and New Zealand.
Cortex president and CEO Mark Varney said Ampakine technology, which includes CX1632, may represent a disease-modifying approach to treating memory and cognitive impairments in patients with Alzheimer’s disease and other disorders, given the demonstrated ability of the compounds to stimulate protective growth factors within the brain.
"Cortex is continuing to investigate both its low-impact and high-impact Ampakine compounds for indications in the psychiatric and neurological space," Varney said.