Neurobiological gets $4 million milestone payment for Xerecept

By Elaine Rigoli

Tampa, Fla., June 19 - Neurobiological Technologies, Inc. has received $4 million from Celtic Pharmaceutical Holdings LP as part of Neurobiological Technologies' previously announced sale of worldwide rights to Celtic for Xerecept, a phase 3 clinical compound for the treatment of peritumoral brain edema, the swelling in the brain that afflicts many brain cancer patients.

This payment is part of a guaranteed $33 million agreement for the sale of Xerecept, which was announced in September 2005. Neurobiological previously received $20 million in November 2005 and $5 million in January 2006.

Under the agreement, Neurobiological said it expects to receive an additional $4 million in January 2007.

Neurobiological will receive up to an additional $15 million if Xerecept meets certain regulatory milestones, according to a news release.

In addition, Neurobiological would be eligible to receive royalties and participate in profit-sharing payments if Xerecept receives regulatory approval and is ultimately commercialized, the release said.

Based in Emeryville, Calif., Neurobiological is a drug-development company focused on the clinical evaluation and regulatory approval of neuroscience drugs.

Celtic Pharmaceutical Holdings is a private equity firm focused on the biotechnology and pharmaceutical industries and is based in Bermuda.

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