Catalyst Biosciences (CBIO) to Divest NNR Assets

October 18, 2016 8:04 AM EDT
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Catalyst Biosciences, Inc. (Nasdaq: CBIO) announced that it has entered into a definitive agreement to sell one of its neuronal nicotinic receptor (NNR) assets that were under development by Targacept prior to its 2015 merger with Catalyst.

Catalyst is focused on developing medicines in the area of hemostasis, and prior to its merger with Targacept, decided not to develop the NNR assets. The divestiture provides an upfront payment to Catalyst of $750,000 and may also allow Catalyst to receive up to a total of $37 million in development, regulatory and commercial milestone payments as well as royalties on net sales.

"The sale of another NNR asset, following our divestiture of three NNR assets earlier this summer, has allowed Catalyst to realize additional value for a subset of these non-core assets as we remain focused on our therapeutic programs in hemophilia," said Nassim Usman, Ph.D., President and Chief Executive Officer of Catalyst.

NNR agonists are a class of drugs targeting neuronal nicotinic receptors, also known as neuronal acetylcholine nicotinic receptors (nAChRs). Under the terms of the agreement, one NNR asset, TC-6499, including related intellectual property rights and materials will be divested. TC-6499 is a molecule that was originally evaluated by Targacept in trials of neuropathic pain and diabetic gastroparesis.

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