Acorda, Neuronex deal

Acorda agreed to acquire Neuronex, which is developing a nasal spray formulation of diazepam for epilepsy. Acorda made an initial payment of $2 million to Neuronex and will pay up to an additional $1.2 million to fund R&D activities prior to the close of the deal. Acorda has the option to complete the acquisition for an additional $6.8 million after Neuronex's pre-NDA meeting with FDA for the diazepam product, which is expected to occur this year. If the deal closes, Neuronex shareholders will be eligible for up to an additional $123 million in milestones, plus royalty-like payments on sales of diazepam products. Neuronex is developing the product under the 505(b)(2) pathway of the Food, Drug and Cosmetic Act, which allows sponsors to reference data on safety and efficacy from the scientific literature or from previously approved products. ...