Acorda Therapeutics Buying Morrisville-based Neuronix Ltd. for Up to $35 Million
New York-based neurological drug company Acorda has struck a deal to acquire Morrisville-based Neuronex for around $9 million – a figure that could increase by $26 million based on potential milestone payments.
Under the terms of the agreement, Acorda made an upfront payment of $2 million to Neuronex and paid $500,000 of up to $1.2 million in research funding for a nasal application of epilepsy treatment diazepam.
Neuronex is preparing a new drug application for the proprietary nasal spray formulation of diazepam. Following the pre-NDA meeting, Acorda has an option to complete the acquisition by paying Neuronex an additional $6.8 million.
If the acquisition is completed, Acorda will assume oversight and financial responsibility for all future development and regulatory programs for diazepam nasal spray. The company expects those expenses will not exceed $8 million in 2012.
There are potential payments to Neuronex and other parties of $1 million for the completion and acceptance of an NDA, and up to $25 million following regulatory approvals in the United States and Europe. Acorda will also pay Neuronex milestone payments and royalties based on net sales of the medication, if approved.
Neuronex, a startup drug development company, raised $1.5 million in a first round of funding back in 2010.