Neurogenetics Inc announced an agreement to license and further develop a compound from Eli Lilly and Company. The compound has a unique mechanism of action and has shown efficacy in numerous animal models including analgesia, migraine headache, anesthesia, epilepsy and neuroprotection. The compound is the first AMPA/Kainate receptor antagonist to be shown efficacious in several Phase II trials across a variety of different pain models including migraine, chronic lower back pain and pain associated with spinal cord trauma.

Neurogenetics acquired worldwide rights and know-how associated with the compound and its derivatives. In return Lilly will receive an upfront fee, success based milestone payments and royalties on sales. Neurogenetics will assume responsibility for all clinical trials, regulatory approvals and marketing. The financial terms of the deal were not disclosed.

Dr. Neil Kurtz, President and CEO of Neurogenetics stated "we are very excited to conclude this licensing deal with Lilly at this critical juncture of our company's growth. Neurogenetics will initiate clinical trials on an intravenous formulation and will simultaneously explore other routes of administration. This opportunity allows Neurogenetics to leverage the strong clinical expertise that exists within the company," added Dr. Kurtz. "Neurogenetics' strategy is to complement its internal drug discovery programs through appropriate licensing to strengthen our pipeline," explained Dr. Kumar Srinivasan, Director of Corporate Development.