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CogState Divests Therapeutic Drug Development Portfolio
21 / 08 / 2006
Key points:
- Out-license agreement signed in respect of pre-clinical AT4 program with milestone based payments and on-going royalty
- CogState's other therapeutic program, NLT, has been returned to its licensor
- No further costs will be incurred on therapeutic drug development, in line with business strategy announced in September 2005
CogState Ltd (ASX:CGS) announced today it has signed an agreement with Pacific Northwest Biotechnology Inc. (PNB) to out-license its pre-clinical therapeutic drug, AT4. The AT4 project is directed at modifying the response at the angiotensin 4 (AT4) receptor, which are found predominantly in areas of the brain that are believed to be crucial for memory formation and are also implicated in Alzheimer''s disease.
The out-license agreement will produce no up-front cash payment, but may produce small milestone based payments and a sales royalty of 1%.
CogState's other therapeutic program, NLT, has been returned to the original licensor for no consideration.
No further costs will be incurred on either of these technologies.
The divestment of CogState's therapeutic research and development is in line with its realignment of its business strategy announced in September 2005, whereby CogState announced that all future work on its drug development pipeline would cease.
Mr Brad O'Connor, Chief Executive Officer of CogState said: "CogState is focussed on the development and commercialisation of our computer based tests of cognition. Once a decision was made to cease the therapeutic drug development program, we sought to extract value from the programs, which are still very early stage, pre-clinical prospects."
- Out-license agreement signed in respect of pre-clinical AT4 program with milestone based payments and on-going royalty
- CogState's other therapeutic program, NLT, has been returned to its licensor
- No further costs will be incurred on therapeutic drug development, in line with business strategy announced in September 2005
CogState Ltd (ASX:CGS) announced today it has signed an agreement with Pacific Northwest Biotechnology Inc. (PNB) to out-license its pre-clinical therapeutic drug, AT4. The AT4 project is directed at modifying the response at the angiotensin 4 (AT4) receptor, which are found predominantly in areas of the brain that are believed to be crucial for memory formation and are also implicated in Alzheimer''s disease.
The out-license agreement will produce no up-front cash payment, but may produce small milestone based payments and a sales royalty of 1%.
CogState's other therapeutic program, NLT, has been returned to the original licensor for no consideration.
No further costs will be incurred on either of these technologies.
The divestment of CogState's therapeutic research and development is in line with its realignment of its business strategy announced in September 2005, whereby CogState announced that all future work on its drug development pipeline would cease.
Mr Brad O'Connor, Chief Executive Officer of CogState said: "CogState is focussed on the development and commercialisation of our computer based tests of cognition. Once a decision was made to cease the therapeutic drug development program, we sought to extract value from the programs, which are still very early stage, pre-clinical prospects."