RespireRx Pharmaceuticals Inc (RSPI)

[neuroinv]

Lots of companies have licensing agreements surrounding their compounds--if Cortex were to be sold, I do not believe UC gets to play a part in deciding whether the licenses are included. Their rights (and deadlines) would move to the acquirer. UC does not want to get into the role of trying to resell part of the Cortex IP.

If the SA trial fails: First, I believe that, even without ADHD data for CX-1739, that there are some partnering talks going on for ADHD. There is nothing 'untouchable' at Cortex, everything can be had for a price--it is determining that price that is the problem. The value of a partnership is far higher with POC, but they could try to license CX1739 geographically, holding to US rights. So that would be the fallback plan if SA fails--and I think they'll know that early too--if there is no indication of change from the first two sleep study nights in the third, and that lack of change is seen for six or seven patients in a row, it'd be unlikely that they are all on placebo. IF that were to occur, they'd be pushing the ADHD licensing. IF that then took place, the agenda would be to get enough money to restart the AD/PD/HD high impact programs, they'd be a neurodegeneration company again. OR the ADHD licensee could just make an offer to take them out--and they'd have to bring that to the BOD. A reluctance to sell when they have both SA and ADHD possible for partnering this year could be different if it's just ADHD and AD/PD/HD, and there isn't money to bring any of it along.

As to pricing--I'd look at Memory Pharma as one indicator. Roche paid under $30 million for the 'enterprise'. But the main asset, the nicotinic program, was already licensed to Roche, they already owned the majority of it. The other programs (PDE4, PDE10, 5HT6) were of questionable value, none has any POC. So the Cortex enterprise should be valued higher.

I know what is going to happen if I state a specific figure or range. Some people are going to start moving into their castles in the sky, demanding that Cortex sell itself for $XX million now, they'd rather have the cash, etc. So I'm not going to do that. If other people want to start coming up with valuations, fine--I still expect them to do a licensing deal and to not be bought out.

NeuroInvestment