RespireRx Pharmaceuticals Inc (RSPI)

[neuroinv]

Once they have SA data, it's too material to keep quiet. So even though nonpublic data is exchanged with potential partners all the time under nondisclosure agreements, this won't be (at least, the top line data will have to be disclosed--they might keep some details quiet as they sift through them). As I said before, they aren't starting from scratch.

If you look at the enterprise values attributed to small CNS companies, Cypress Biosciences, with the launch underway for Savella they partnered with Forest, has an enterprise value (not including cash) of what, about $120 million? There is a cadre of relatively well-off companies like Cephalon, Shire, Sepracor, and then there's almost everybody else, with valuations in the double digit millions--or less, even negative numbers. Cypress is one of the few in between, and XenoPort. $5 per share would mean $300+ million. The only way one can get there is to license SA/RD for enough money to operate for long enough to run whatever low impact remains available through Phase II for ADHD. That's the best-case scenario in this environment, and while it's not impossible, getting that much upfront (how much they need depends on whether they still could use CX1739, unlikely, or a backup) is a challenge given the time constraints.

It's not going to happen with a nearterm buyout, not anywhere close.


And just to raise the topic of bad luck again, I suspect that someone will suggest that it's Cortex's fault that Schering-Plough probably took itself out of partnering because of agreeing to be purchased by Merck. But that's a big card that's unlikely to be played.

Enemem: It's been discussed--patients come for two nights to assess their stability of apnea symptoms, it's the third night that the efficacy is tested. If they aren't consistent on the first two nights, it's too risky to run them through the trial.

NeuroInvestment