Neurobiological Technologies, Merz Pharma Reveals Amendment To Its License And Cooperation Pact

(RTTNews) - Neurobiological Technologies, Inc. (NTII | news | PowerRating | PR Charts ) disclosed amendment of its license and cooperation agreement with Merz Pharmaceuticals GmbH and Childrens' Medical Center Corporation or CMCC in connection with memantine that is currently marketed in the United States as Namenda and in Europe as Ebixa.

The companies stated that the amendment modifies the terms of the royalties to be paid on sales of memantine, which includes discontinuing the payment of royalties on sales of memantine for Alzheimer's disease outside the United States commencing from the fourth quarter of 2007.

Neurobiological Technologies added that there was a royalty payment due in April 2008 and the amendment provided for a staged reduction in the royalty rates to be paid from the third quarter of 2008.

Additionally, the amendment envisages that neither CMCC nor Merz will give notice of termination of the agreement under the section relating to the development of memantine before July 1, 2009 or to be effective before January 1, 2010.

Neurobiological Technologies stated that following the amendment, it received $2.16 million from Merz due on January 30, 2008 of the royalties on sales of memantine in the third quarter of 2007.

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