Neuralstem out-licenses compounds to BRM

Neuroscience firm Neuralstem says that it has agreed an exclusive licensing deal with fellow USA-based company Biomedical Research Models, under which the latter, a contract research organization, will develop compounds discovered by Neuralstem for diabetes indications.

The accord covers Neuralstem's library of patent-pending molecules, which were identified using its human stem cell line. As Richard Garr, the firm's president, explained the "ability to grow regionally specific, physiologically relevant human nerve cells in large quantities, in vitro, provides a unique tool for discovering drugs to treat neurological and psychiatric diseases." He added that BRM's focus on the creation of novel drug therapies makes it an excellent partner for the development of molecules identified by Neuralstem's drug discovery program.

The agreement stipulates that BRM pays annual license fees until product commercialization, in addition to milestone payments based on the achievement of certain pre-defined clinical goals. Neuralstem added that it could receive up to $38.0 million for each licensed compound that is approved by the Food and Drug Administration.