Neuralstem, Inc. announced today the execution of an exclusive license agreement to Biomedical Research Models, Inc. for the development of Neuralstem compounds

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.”

BRM signs contract with Michigan State University (MSU) to provide research services toward developing a drug treatment for Diabetic Retinopathy

BRM signs contract with Michigan State University (MSU) to provide research services toward developing a drug treatment for Diabetic Retinopathy. In January 2007, BRM signed a contract with Michigan State University (MSU) to provide research services toward developing a drug treatment for Diabetic Retinopathy. As part of the research collaboration BRM is now positioned to evaluate the MSU therapy as a possible treatment for diabetic renal failure. The University of California at San Francisco received a seven year contract totaling $220 Million. The goal of the funding is to perform clinical trials via the Immune Tolerance Network (ITN) (www.immunetolerance.org). ITN and BRM have entered into a contract with University of California at San Francisco to perform preclinical studies in autoimmunity including; Type 1 diabetes, Multiple Sclerosis and Rheumatoid Arthritis.