Neuroscience tech company Cogstate (ASX: CGS) has re-acquired the global rights to its technology previously exclusively licensed to Japanese pharma company and its global commercial partner, Eisai. The agreement excludes Japan and will come into effect on April 1, 2024.
This marks an amendment to the duo’s 2020 agreement, which includes exclusivity across a few regions. The amended agreement with Eisai will allow Cogstate to continue working jointly with Eisai and explore extended roles for its tech.
Chief Executive Officer of Cogstate, Brad O’Connor, said, “The Amended Global License Agreement provides Cogstate with clear rights in respect of all intellectual property and will allow Cogstate to explore additional opportunities for identification of the first signs of cognitive impairment in the community.
“We are also eager to explore whether there is an extended role for Cogstate in the identification of patients that may benefit from new Alzheimer’s treatments.”
Eisai and Cogstate signed their initial agreement on October 26, 2020, to exclusively distribute Cogstate digital cognitive assessment technologies in healthcare and other markets worldwide (except Japan). The Original Agreement specifically excluded clinical trials, where Cogstate continued to market its offering independently.
Eisai got exclusive rights for ten years to Cogstate technology in the applicable markets, even against Cogstate. The company made an upfront payment of $15 million to Cogstate and agreed to pay a royalty to Cogstate, which was based on a percentage of revenue generated but would not be less than $30 million over the term of the license.
Following the amendment, Cogstate retains the initial Eisai upfront payment ($15 million) and all royalty payments received to date ($3.5 million). It will also receive future minimum royalties of $11.5 million from April 2024 until the end of the term, August 2031, and agrees to forgo $15 million of future minimum royalties. The reduction in future minimum royalties will have the greatest impact in financial years FY28 through FY31.
Now, Eisai has a non-exclusive license to distribute Cognigram (a digital cognitive testing tool) in the USA and CogMate (a digital tool for self-assessment of brain health) in certain Asian countries until August 2031. Cogstate has acquired sole rights to any jointly owned ancillary intellectual property created since the commencement of the Global License Agreement.
In April 2024, Eisai plans to launch Cognigram to primary care physicians in the critical USA market in April 2024. That is, the amendment has not altered Eisai’s plans to launch Cognigram in the USA market, and Cogstate is continuing to support Eisai’s efforts in that market. Eisai will also continue to interact directly with consumers, via CogMate, in the Asian markets—an approach that the Company believes can show promise in other territories, including the USA, where the existing healthcare system may be slow to change.
Connor added, “Cogstate values its partnership with Eisai in both the Clinical Trials and Healthcare segments of our business. This month, we are looking forward to the USA launch of the new memory version of Cognigram that has been designed in conjunction with Eisai.”
The Amended Global License Agreement doesn’t affect Eisai’s scheduled introduction of Cognigram to American physicians this month (April 2024). It also doesn’t alter Eisai’s ownership of 6.8% of Cogstate shares or the exclusive 10-year license Eisai secured for Cogstate technology in Japan back in 2019.
Alinda is a Business Reporter for The Sentiment
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1 Comment
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