Clinical Data completes vilazodone technology transfer

Clinical Data Inc says that it has completed the transfer of the manufacturing technology necessary to produce a commercial supply of vilazodone, its dual serotonergic antidepressant currently in pivotal Phase III clinical trials in the USA. The company's wholly-owned subsidiary, Genaissance Pharmaceuticals, acquired the rights to develop and commercialize vilazodone from Merck KGaA of Darmstadt, Germany, in September 2004.

Under the terms of the license agreement, CDI was required to make a milestone payment to Merck for the transfer of the vilazodone manufacturing technology in Clinical Data common stock equivalent in value to 1.25 million euros ($1.65 million). The milestone payment has been made through the issuance of an aggregate of 102,588 shares, 24,947 of which were issued at the time of the exercise of the company's right to transfer the manufacturing technology in August of this year, and 77,641 on December 20, when the transfer was completed. All of the shares issued to Merck are unregistered but carry certain demand and incidental registration rights as provided under the license deal. The company intends to conduct aspects of the manufacturing of the clinical development and commercial supply of vilazodone through a third party.