Epicept Corporation has sold all of its rights to Ceplene in the territories previously licensed to Meda AB, and a portion of its remaining Ceplene inventory, to Meda for approximately in cash and the assumption of ongoing responsibilities related to the manufacture and maintenance of the marketing authorization of Ceplene in the European Union.
The cash received from this transaction together with the savings from future expenses, after making a partial prepayment on existing term loan with of approximately $0.8 million, will enable to operate into the fourth quarter 2012 without further financing.
Under the terms of the transaction, Meda has as of the closing date assumed responsibility for the manufacturing of Ceplene in the territories previously licensed to Meda and will absorb all of the remaining expenses relating to the post-approval clinical study of Ceplene that is required by the European Medicines Agency (EMA). has also agreed to relinquish all future milestone payments and royalty on future sales of Ceplene by Meda. In conjunction with the closing of this transaction will close its facility in Munich, Germany.
Jack Talley, president and CEO of Epicept, commented, “This transaction is important to because it strengthens our liquidity position, saves capital by eliminating our ongoing financial commitment to Ceplene in Europe, and allows us to focus resources on our other products in development, notably AmiKet. We are pleased that we have been able to complete this transaction and look forward to working closely with Meda in the transitioning efforts.”
Epicept maintains full ownership of Ceplene in those countries not previously licensed to Meda, including all of North and South America. The Company's agreement with for the sales of Ceplene in is not a part of the transaction.
SunTrust Robinson Humphrey acted as financial adviser to Epicept in this transaction. Epicept engaged SunTrust Robinson Humphrey Inc., in January 2012 to assist in exploring strategic alternatives to maximize the commercial opportunity of AmiKet for the treatment of CIPN following taxane-based therapy. The sale of licensed Ceplene rights to Meda provides additional liquidity to the Company's operations and may enhance EpiCept's ability to finalize a transaction with potential acquirers or with investors or licensors of AmiKet.
Epicept is focused on the development and commercialization of pharmaceutical products for the treatment of pain and cancer.