NRx Pharmaceuticals, Inc. has made public the advance of its initial partnership milestone payment of $5 million with Alvogen, Inc. and Lotus Pharmaceutical Co. Ltd. As per the revised contract, NRx will use the quick receipt of this $5 million to support the progression of NRX-101 up to the phase 2 consult with FDA.
In return for pushing the milestone forward, Alvogen and Lotus will be awarded 4.1 million warrants. These can be used to purchase NRx common stock at a $0.40 strike price over a period of three years. The second part of the milestone, of $4 million, will be triggered when the FDA gives a positive reaction to the planned phase 2 meeting.
Subsequently, NRx may receive up to $320 million concerning future development and sales milestones. In addition to this, escalating royalty payments could be made based on net sales, on condition that certain sales volumes are achieved.
In the future, Alvogen and Lotus will cover the developmental and commercialization costs of NRX-101, in relation to the treatment of bipolar depression accompanied by suicidality.
