NeurogesX receives $40M in Cowen deal

NeurogesX Inc. (NASDAQ:NGSX) received $40 million from Cowen Healthcare Royalty Partners under a royalty financing agreement. NeurogesX said the agreement creates a debt obligation that will be repaid through and secured by milestones and royalties that NeurogesX is eligible for under last year's deal with Astellas Pharma Inc. (Tokyo:4503), which received exclusive rights to commercialize Qutenza in the European Economic Area; Switzerland; and countries in Eastern Europe, the Middle East and Africa. The dermal patch containing capsaicin is approved in the EU to treat peripheral neuropathic pain. NeurogesX said it is eligible for up to EUR 70 million ($93 million) in milestones and license option payments from the deal, which also gave Astellas an option to co-develop and commercialize NGX-1998 to treat neuropathic pain.

Once the debt obligation is repaid, all payments under the Astellas deal will revert to NeurogesX. The company said the agreement will provide enough capital to last through at least 2011. NeurogesX markets Qutenza in the U.S., which is not included in the Cowen deal (See BioCentury Extra, Monday, June 22, 2009). ...