Radiopharmaceutical developer Navidea Biopharmaceuticals said it will extend the evaluation period on its option to license Alseres Pharmaceuticals' Altropane imaging agent for Alzheimer's disease until the end of July.
Navidea had signed an option agreement with Alseres in January 2012 to complete due diligence and prepare documentation necessary to execute a definitive license agreement on the firm's iodine-123-radiolabeled imaging agent. While strong progress has been made in the company's diligence efforts, Navidea is still in the process of obtaining and interpreting feedback from regulatory bodies to clarify the development path ahead, Dr. Thomas Tulip, executive vice president and chief business officer, said in a statement.
Navidea paid an option fee of $500,000 for the exclusive right to negotiate a definitive license agreement by June 30. However, the option agreement also gave Navidea the right to extend the option period until July 31 for an additional $250,000, which would be due upon execution of a definitive license, if completed.
The option agreement also anticipates that Navidea will issue Alseres 400,000 shares of Navidea common stock upon execution of the definitive license agreement. In addition, the option anticipates that the license agreement will provide for contingent milestone payments of up to $3 million and the issuance of up to an additional 1.05 million shares of Navidea stock.
The license terms also anticipate royalties on net sales of the approved product that are consistent with industry-standard terms, Navidea said.
