ARTICLE | Company News

NovaDel neurology news

April 7, 2014 7:00 AM UTC

NovaDel said it will submit a recommendation to shareholders to dissolve the company and liquidate its assets. Pending shareholder approval and the sale of NovaDel's last remaining drug asset - ZolpiMist zolpidem tartrate - the company expects the liquidation to occur by May 31. NovaDel said that it plans to sell to an undisclosed third party its ZolpiMist assets, which consist of IP and the license held by the ECR Pharmaceuticals Co. Inc. subsidiary of Hi-Tech Pharmacal Co. Inc. (NASDAQ:HITK, Amityville, N.Y.), for the assumption of the undisclosed amount due to FDA relating to ZolpiMist. The agreement is subject to the undisclosed third party obtaining financing. NovaDel said that if the financing is obtained, the deal will close by the end of April. ZolpiMist, a non-benzodiazepine GABA A receptor agonist, is approved in the U.S. for the short-term treatment of insomnia characterized by difficulties with sleep initiation. ECR Pharmaceuticals has rights to manufacture and commercialize ZolpiMist in the U.S. and Canada, and the undisclosed third party will be eligible to receive undisclosed royalties from ECR. NovaDel said whether ZolpiMist is commercialized outside of the U.S. and Canada is at the discretion of the undisclosed third party. The company said ZolpiMist revenues are not disclosed.

Rechon Life Science AB (Limhamn, Sweden) formerly held rights to ZolpiMist outside the U.S. and Canada, but NovaDel said the license was terminated "a year or so ago" after undisclosed performance metrics were not met (see BioCentury, Aug. 29, 2011). ...