EMERYVILLE, Calif., June 19 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NTI) today announced it has received $4 million from Celtic Pharmaceutical Holdings L.P. (Celtic Pharma) as part of Neurobiological Technologies' previously announced sale of worldwide rights to Celtic Pharma for XERECEPT(R), a Phase III clinical compound for the treatment of peritumoral brain edema.
This payment is part of a guaranteed $33 million agreement for the sale of XERECEPT, which was announced in September 2005. NTI previously received $20 million in November 2005 and $5 million in January 2006. As per the agreement, NTI expects to receive an additional $4 million in January 2007. NTI will also receive up to an additional $15 million if XERECEPT meets certain regulatory milestones. In addition, NTI would be eligible to receive royalties and participate in profit-sharing payments if XERECEPT receives regulatory approval and is ultimately commercialized.
Paul Freiman, President and CEO of NTI said, "Teaming with Celtic Pharma on XERECEPT has been a rewarding experience for us. As NTI is also running the clinical trials for XERECEPT on Celtic's behalf, we are able to actively participate in the testing of the drug, which is being evaluated for the treatment of Peritumoral Brain Edema, the painful and devastating swelling in the brain that afflicts many brain cancer patients. As we are approaching the midpoint of the first trial, we expect soon to be conducting an interim analysis."
Mr. Freiman continued, "The cash we have received from Celtic Pharma for XERECEPT has helped us fund ongoing company programs. This is an exciting time for NTI as we are actively involved in two very important drugs that are concurrently in Phase III trials. NTI will continue to develop Viprinex here in the U.S., and we are currently seeking a partner who will be able to commercialize Viprinex in markets outside of the U.S."
Mr. Freiman concluded, "We believe we made a sage decision to partner with Celtic. We believe in strategic partnerships and we will continue to seek alliances to help us fuel NTI's continued growth."
About Neurobiological Technologies, Inc.
NTI is a drug development company focused on the clinical evaluation and regulatory approval of neuroscience drugs. The company's strategy is to in-license and develop early- and later-stage drug candidates that target major medical needs and which can be rapidly commercialized. NTI's experienced management team oversees the human clinical trials necessary to establish preliminary evidence of efficacy. We anticipate that we will continue to acquire and develop late-stage neurologic drug candidates and will develop the resources to market these drugs in selected world regions. Our goal is to develop and market drug candidates in the United States, Europe and Asia and we may seek partnerships with pharmaceutical and biotechnology companies to assist us.
About Celtic Pharmaceutical Holdings L.P.
Celtic Pharmaceutical Holdings L.P. (Celtic Pharma) is a global private equity firm focused on the biotechnology and pharmaceutical industries. Celtic Pharma was founded by Stephen Evans-Freke and John Mayo, CBE and is based in Bermuda. Celtic Pharma acquires late stage pharmaceutical programmes and drives these programmes through the final stages of regulatory approval. Celtic Pharma's aim is to bridge the gap between the established pharmaceutical companies' new product pipeline crisis and the biotech industry's capital drought. For further information, please visit Celtic Pharma's website at www.celticpharma.com.
NOTE: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, our reliance on Celtic for the development and commercialization of XERECEPT, risks related to clinical trials and the regulatory approval process and other risks detailed from time to time in our Securities and Exchange Commission filings. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of the release. We disclaim, however, any intent or obligation to update these forward-looking statements.
Neurobiological Technologies, Inc.CONTACT: Paul E. Freiman, President & CEO of Neurobiological Technologies,Inc.; +1-510-595-6000, or Cheryl Schneider, VP - Investor Relations ofPorter, Le Vay & Rose, Inc., +1-212-564-4700, for NeurobiologicalTechnologies, Inc.
