Two points: I think the current price action is part of the lead-up to a PIPE that may be announced December 6'th. This is pure speculation on my part but most of these financings are preceeded by this sort of action. I think this financing could be fore about 8-10 million--giving Cortex comfortably a year of cash in total by year end.
Second point: The Organon-Cortex may not happen, but the dissolution of the Pfizer-Organon relationship enhances the 'need' for Organon to demonstrate they are more than the sum total of Pfizer's collaboration for a single compound. If Cortex does not get a loosening on the dosage of CX717 and even for Alzheimer's in terms of length(?) and flexibility past 1-3mg/kg/day then it would makes sense for Cortex to move into some sort of option agreement with Organon for ORG24448 to be tested in AD and/or ADHD. To repeat, Organon has not had any problems with ORG24448 in their one or three month histology; I have heard this directly from Organon and indirectly from what Dr. Stoll has said in public.
How might such a deal work? It could work out in a wide variety of machinations: perhaps with an option type of deal for upfronts now--3-4 million to Cortex in return for set mandated test for ORG24448 in phase II for Alzheimer's in concert with Aricept and also for set mandated test in young adults for ORG24448 for ADHD leading to a major partnership for both compounds. Cortex and Organon would both have little to lose of both parties had a walk off option at the end of this set period. Or, backup compounds could be included now for a partnership deal for ADHD and AD with ORG24448 for much higher upfronts now and standard research support. But there are a million shades of gray in terms of the varieties such a collaboration would structure.
Such a deal would serve two purposes: to show the street and investors that the ampakine platform is not dead, but alive an kicking into phase IIb in a variety of conditions with a safe ampakine, effectively bypassing the low impact testing time of 18 months for the backups. A major time savings. Two, the money situation would improve with the support from Organon and financings at better levels such a deal would allow. Again, this deal may not happen, but the Pfizer pullout only makes Organon more tuned into their public image of being a one-trick Pfizer donkey.
AI
