Seelos Therapeuticse has announced an additional amendment to its 2018 agreement with Vyera Pharmaceuticals (now Phoenixus) in order for the company to repurchase 9% of royalties payable on any future net sales of SLS-002 intranasal racemic ketamine. A previous amendment to the agreement that allowed Seelos to make cash and stock payments instead of a milestone payment that would have been due on initiation of a Phase 3 trial was announced in October 2019.
Seelos recently announced the initiation of a Phase 2 study of SLS-002 for the treatment of acute suicidal ideation and behavior in patients with major depressive disorder. The FDA granted SLS-002 Fast Track designation for that indication in November 2019.
Seelos Chairman and CEO Raj Mehra said, “We believe this repurchase of a significant portion of royalties due on SLS-002 has the potential to return meaningful future value to Seelos stockholders, assuming we are successful in the clinical development, FDA approval process, and commercialization of the intranasal ketamine program. The current study of SLS-002 is dosing patients with major depressive disorder who are at imminent risk of suicide. We plan to further evaluate ketamine in front-line major depression and other related indications.”
SLS-002 was originally developed by Turing Pharmaceuticals prior to the arrest of Turing founder Martin Shkreli. Turing subsequently changed its name to Vyera and then to Phoenixus. A lawsuit filed by Phoenixus shareholders in November 2020 claims that the company is “little more than a corporate shell” controlled by Shkreli.
Read the Seelos Therapeutics press release.
