RespireRx Pharmaceuticals Inc (RSPI)

[gfp927z]

Aiming, OT- PTIE - The Remoxy deal has nice upfronts ($150 mil) but the royalty rates aren't great (only 15% of the first 1 Bil in sales, and 20% thereafter). If Remoxy turns out to be a Bil/year drug, PTIE loses out on $800 mil/year in revenues. Another potential problem is that in the fine print of the press release they say that "Pain Therapeutics will retain sole control of drug development activities THROUGH PHASE 2. The companies will jointly manage Phase 3." So that may indicate that there is in fact a new formulation which will have to go back to Phase 2 (there have been questions about the need for a re-formulation of Remoxy for some time). Anyway, I took profits on my measly 250 shares at $9.10, and will have to plan a new strategy going forward. With the Oxytrex and PTI-901 results looming in the next several weeks, things should be lively, but with the price up there is added danger. Barbier will undoubtedly declare victory in the Oxytrex trial, as long as efficacy is at least equivalent to Oxycodone. Whether or not it's actually a victory will depend on the FDA, and we still don't know if they've accepted the new endpoints. PTI-901 of course is a total wildcard.