I think you make a good point about the cost of clinical advancement. If someone wanted to buy one or both chunks of Cortex's assets, they could have done so with Varney. My suspicion, and it's only that, since Lippa has not responded to my inquiry, is that the price of raising money to go ahead with a clinical trial for an Ampakine is a change of control--as I've commented before, financings seem to operate in circuits of familiarity. Varney's sources had dried up, Lippa probably has his own circle of financing resources. But I suspect current shareholders will not be happy with whatever terms eventuate (though bankruptcy would be even more unappealing). Alternatively, if dronabinol for SA is the asset of choice, that trial is paid for, they'd need to raise enough money to keep the lights on, since the NIH grant can only be used for trial costs, not overhead.
Two weeks ago I was at a CNS drug development meeting where someone from NIH polled a few of us to shelved mechanisms that deserve another chance (NIH has some money they are putting into this concept). As I usually do, I mentioned Ampakines, and a few Big Pharma people nodded their heads. But none of them have painkiller-induced RD anywhere on their radar, and the diaspora of ex-Lilly people around the industry means that several companies have scientists who say--'we couldnt solve Ampakines, so they're not solvable'. RD is not an indication NIH is considering.
If someone can run a Phase II that gives convincing 'proof of principle' (an illusory term, the way it's used at present), they'll find a buyer, I believe. Probably a pain company. Why a pain company hasnt stepped up thus far is something we have all wondered about, it's a discredit to the industry.
Cortex's market cap must be in the $5 million range, and they'd probably need $10 million to put themselves in position. Lippa may have an idea--and resources--to get there, but it would be ugly. If instead, keeping in operation for the sake of dronabinol is the goal, and Pier's participation in the takeover leaves that open as a possibility, that would be a lot cheaper, but that would leave Ampakines on the shelf, perhaps forever.
NP
