DOV Pharmaceutical Receives $6.5M for Rights to Bicifadine
XTL is committed to the continued clinical development of bicifadine in the neuropathic pain area.!--h2>
DOV Pharmaceutical negotiated an exclusive, worldwide license agreement with XTL Biopharmaceuticals for the development and commercialization of bicifadine, DOV's drug candidate.
Under the terms of the agreement, DOV will receive an upfront payment of $6.5 million, of which $5.0 million will be paid to Wyeth as a result of the acceleration of a milestone payable from DOV to Wyeth pursuant to the parties' license agreement for bicifadine. Additionally, XTL will make a $1.0 million payment to DOV within 30 days upon successful transfer to XTL of the IND and certain program documentation. The total deal terms exceed $130.0 million, with escalating low double-digit royalties on annual net sales of bicifadine. XTL will fund future research, development, manufacturing and commercialization costs.
"Establishing this alliance with XTL is a critical step in our strategic plan outlined in October 2006. XTL is a motivated partner who has committed to the continued clinical development of bicifadine in the neuropathic pain area. This partnership will allow us to refocus our clinical development efforts on our triple reuptake inhibitor program, including the initiation of a Phase II study for DOV 21,947 in depression in the third quarter of 2007, and our discovery efforts on our GABAA receptor modulator and reuptake inhibitor programs" said Barbara Duncan, president and CFO of DOV.