Memory to initiate MEM 3454 CIAS trial

New Jersey, USA-based biopharmaceutical company Memory Pharmaceuticals has announced plans for a Phase IIa proof-of-concept study of MEM 3454, a nicotinic alpha-7 partial agonist, in the treatment of cognitive impairment associated with schizophrenia (CIAS). The firm added that it plans to initiate the trial in the fourth quarter of this year.

Memory explained that it had taken several steps to ensure full support for the program, including the expansion of its development accord with Swiss drugmaker Roche (Marketletters passim). Revisions to the deal, which was originally established in August 2002, require that Roche makes an additional milestone payment on completion of the Phase IIa CIAS trial in order to maintain its option to license the agent.

Memory has also amended its loan agreement with investment firm Hercules Technology Growth Capital, securing an extra $5.0 million to fund the proposed trial. The company retains the option to request a further $4.0 million before the end of the year. In return, Hercules has been provided with warrants to purchase 325,521 shares for $1.92 each.