RADNOR, PA — NRx Pharmaceuticals, Inc. (Nasdaq: NRXP), a biopharmaceutical company based in Pennsylvania, has announced the receipt of an advanced milestone payment of $5 million from its partners, Alvogen, Inc. and Lotus Pharmaceutical Co. Ltd. (1975.TW). The payment is part of their updated agreement and will be used to fund the development of NRX-101, a promising treatment for bipolar depression with suicidality.
The advance is the first portion of a larger milestone tied to the progression of NRX-101 through phase 2 FDA meetings. In return for this early payment, Alvogen and Lotus will be granted 4.1 million warrants to purchase NRx’s common stock at a strike price of $0.40, valid for a three-year term. Should the FDA respond positively to NRx’s planned end-of-phase-2 meeting, the company will receive the second portion of the milestone, amounting to $4 million.
The agreement outlines the potential for NRx to receive up to $320 million in future development and sales milestones, contingent on achieving certain sales volumes. Royalty payments, escalating to mid-teen percentages on net sales, are also part of the deal. Importantly, Alvogen and Lotus will assume responsibility for future development and commercialization costs for NRX-101.
This development comes at a time when funding clinical development has become a significant hurdle for many biotech companies. “We appreciate the confidence of partners that share our view that NMDA-antagonist drugs potentially represent a new and potent class of medicines to treat bipolar depression with suicidality,” said Stephen Willard, Chief Executive Officer of NRx Pharmaceuticals.
The financial backing from Alvogen and Lotus not only underscores the potential of NRX-101 but also reflects the growing interest in NMDA-antagonist drugs. These medications are believed to represent a new class of powerful treatments for bipolar depression with suicidality, which is a severe and often under-treated condition.
The advance payment signifies a significant milestone for NRx, highlighting the potential of its innovative drug development approach. Furthermore, it emphasizes the importance of strategic partnerships in overcoming the financial challenges common in the biotech industry. As NRx continues its work on NRX-101, the industry will be watching closely, anticipating the impact this novel treatment could have on the lives of those battling bipolar depression.
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