Cannasat in LOI for Parkinson’s drug

Cannasat Therapeutics (TSX-V:CTH) has entered into a letter of intent with Adagio Pharmaceuticals, granting Cannasat the option to license all intellectual property relating to APL-130277, a reformulation of an approved drug for Parkinson’s disease.

The accord would result in Cannasat assuming product development and commercialization rights to APL-130277 from Adagio in return for development milestones and royalties, including common shares of Cannasat.

The letter of intent, which is part of Cannasat’s new drive to expand its CNS portfolio, includes an exclusive 12-month option that allows the company to conduct further due diligence and proof-of-concept studies for APL-130277 prior to executing the full licence.

In a statement, Cannasat said that using the FDA’s 505(b)(2) regulatory pathway could lead to a new drug application in late 2014 or early 2015.

Cannasat CEO Anthony Giovinazzo is a director, officer and shareholder of Adagio, a private holding company for the APL-130277 asset only. “Steps have been taken to address any potential conflict of interest, including the engagement of independent third party business development consultants to assist in negotiations,” Cannasat said, adding that its board will review and approve the final agreement.