Neuralstem, Inc. announced today the execution of an exclusive license agreement to Biomedical Research Models, Inc. for the development of Neuralstem compounds to treat certain cognitive and neurological impacts of diabetes.
PRNewswire-FirstCall — Neuralstem, Inc. (OTC Bulletin Board: NRLS), headquartered here, announced today the execution of an exclusive license agreement to Biomedical Research Models, Inc. for the development of Neuralstem compounds to treat certain cognitive and neurological impacts of diabetes.
The agreement includes annual license fees until product commercialization; milestone payments upon the completion of agreed-upon clinical goals, which could total approximately $38 million for each licensed product that is approved by the FDA; as well as royalties on ensuing products.
The license covers a library of Neuralstem patent-pending compounds, discovered using Neuralstem’s patented human neural stem cells. The company said that the compounds, when orally administered, have been shown in adult mice to recruit and stimulate the body’s own stem cells to form new neurons in the brain, and may be useful in healing and protecting injured brain areas.
“What we have is a true platform technology,” said Richard Garr, Neuralstem President and Chief Executive Officer. “Neuralstem’s ability to grow regionally specific, physiologically relevant human nerve cells in large quantities, in vitro (in dishes) provides a unique tool for discovering drugs to treat neurological and psychiatric diseases. It gives the company a way to leverage our cells’ unique properties in both our cell therapy and drug development programs. Our licensee, Biomedical Research Models, Inc., is focused on developing novel drug therapies for the treatment of diabetes, and will provide an excellent partner to move the results of our drug discovery program forward in this area.”
Neuralstem recently received a $500,000 grant from the NIH to study the possible effectiveness of its compounds to treat depression. “The creation of Neuralstem’s unique drug discovery platform (patent-pending) was funded by an award from the U.S. Department of Defense several years ago,” Garr added. “Neuralstem retains the rights to these compounds for all indications other than diabetes.”