EpiCept, Meda sales and marketing update
EpiCept made several moves to save cash and extend its projected operations into 4Q12. EpiCept will receive $2.6 million in cash from Meda in exchange for relinquishing future milestones and royalties under a 2010 deal for acute myelogenous leukemia (AML) drug Ceplene histamine dihydrochloride. Meda, which has rights to market Ceplene in Europe and certain Pacific Rim countries including Japan, China and Australia, will assume responsibility for manufacturing Ceplene in its territories and expenses relating to a post-approval study required by EMA. EpiCept retains rights to the histamine receptor agonist in all territories not licensed to Meda or MegaPharm Ltd. (Raanana, Israel), which has rights in Israel. Ceplene is approved in the EU and Israel to maintain remission and prevent relapse in patients with AML in first complete remission. EpiCept said in its 1Q12 financial results that sales of Ceplene continued to be "immaterial."
EpiCept also closed its EpiCept GmbH facility in Munich, Germany. The facility, which had a $1 million operating loss in 2011, only performed certain duties related to Ceplene. EpiCept said the need for the facility no longer exists after transferring rights to Meda. ...