HOPKINTON, Mass., July 31, 2012 /PRNewswire/ -- Alseres Pharmaceuticals, Inc. (OTC: ALSE) today announced that it has entered into an agreement with Navidea Biopharmaceuticals, Inc. (NYSE MKT: NAVB, "Navidea") to license, [ 123I]-E-IACFT Injection (CFT), also called Altropane®, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson's disease and movement disorders.
"We are pleased to have completed this agreement with Navidea. With its focus, dedication, and imaging expertise, Navidea represents an ideal partner to complete the development and commercialization of this promising agent that may help millions of patients with movement disorders arrive at a more timely and accurate diagnosis," said Peter G. Savas, CEO of Alseres.
"The diagnostic dilemma in movement disorders remains a pressing medical need that will continue to escalate as our world's population ages," said Dr. Mark Pykett, President and CEO of Navidea. "The addition of the CFT program is consistent with our growth strategy to build our precision radiopharmaceutical pipeline with later stage, high value diagnostics aimed at important medical needs."
"We believe that CFT has the potential to be a best-in-class imaging agent to improve diagnostic accuracy by differentiating Parkinson's disease from non-degenerative movement disorders, especially during the period soon after onset of symptoms," said Dr. Thomas Tulip, Navidea' s EVP and Chief Business Officer.In January 2012, Alseres and Navidea executed an Option Agreement pursuant to which Navidea paid Alseres the non-refundable sum of $500,000 in exchange for the exclusive option to license the CFT program, to conduct its final due diligence review of the program and to prepare the paperwork necessary for the execution of the license. Under the terms of the license agreement, Alseres granted Navidea an exclusive, worldwide sublicense to research, develop, and commercialize CFT. In connection with the execution of this agreement, Navidea will make a one-time sublicense execution payment to Alseres equal to (i) One Hundred Seventy-Five Thousand Dollars ($175,000) and (ii) issue Alseres 300,000 shares of NAVB common stock. The license agreement also provides for contingent milestone payments of up to $2.9 million, $2.5 million of which will principally occur at the time of product registration or upon commercial sales, and the issuance of up to an additional 1.15 million shares of Navidea stock, 950,000 shares of which are issuable at the time of product registration or upon commercial sales. In addition, the license terms anticipate royalties on yearly net sales of the approved product which are consistent with industry-standard terms and certain license extension fees, payable in cash and shares of common stock, in the event certain milestones are not met. About [ 123I]-E-IACFT (CFT) CFT is a patented, novel, small molecule radiopharmaceutical used with single photon emission computed tomography (SPECT) imaging to identify the status of specific regions in the brains of patients suspected of having Parkinson's disease. The agent binds to the dopamine transporter (DAT) on the cell surface of dopaminergic neurons in the striatum and substantia nigra regions of the brain. Loss of these neurons is a widely recognized hallmark of Parkinson's disease.
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