Neurobiological Tech receives $5 million payment from Celtic Pharma for Xerecept

By Angela McDaniels

Seattle, Jan. 19 - Neurobiological Technologies Inc. said it has received a $5 million payment from Celtic Pharmaceutical Holdings LP for Xerecept, a drug candidate used for the treatment of swelling associated with brain tumors.

Neurobiological sold the rights for Xerecept to a subsidiary of Celtic Pharmaceutical in September.

Celtic Pharmaceutical agreed to pay $33 million. Neurobiological received $20 million on Nov. 28, and additional payments will be received in June 2006 and January 2007.

If Xerecept meets certain regulatory milestones, Neurobiological said it may receive an additional payment of up to $15 million. If Xerecept receives regulatory approval and is commercialized, the company would also be eligible to receive royalties and participate in profit-sharing payments.

Xerecept, a synthetic preparation of the human peptide coritcotropin-releasing factor, is in phase 3 trials for peritumoral brain edema.

Neurobiological is a drug development company based in Emeryville, Calif., that in-licenses and develops drug candidates that target major medical needs.

Celtic Pharmaceutical is a private equity firm focused on the biotechnology and pharmaceutical industries.

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