IntelGenx and Cannasat in Relivar licensing pact

IntelGenx (TSX-V:IGX) and Cannasat Therapeutics (TSX-V:CTH) have entered into a letter of intent that would give IntelGenx a 50% ownership stake and an exclusive worldwide licence to develop and commercialize Cannasat’s Relivar drug candidate.

Under the accord, the two companies will negotiate an exclusive worldwide licence that should result in IntelGenx assuming sole product development and corresponding financing as well as commercialization rights for Relivar.  The accord also lays out the terms for shared milestones and royalties generated by sublicensing Relivar to a potential pharmaceutical marketing partner in the future.

Relivar is a novel buccal formulation of dronabinol, an approved drug for the treatment of chemotherapy-induced nausea and vomiting, and HIV-associated wasting disease.  Relivar was developed using IntelGenx’s proprietary mucoadhesive AdVersa technology, for the treatment of various diseases, including neuropathic pain.

On finalizing a definitive licence agreement, IntelGenx would forgive about $231,000 of debt owed by Cannasat.

“This licensing transaction should help accelerate the development of Relivar for CNS disorders at IntelGenx while allowing Cannasat to focus on other CNS drug candidates,” Cannasat CEO Anthony Giovinazzo said in a statement.  “IntelGenx has been our development partner for Relivar since the beginning of the project, and this licensing partnership is a natural extension of the existing relationship.”

IntelGenx’s CEO Dr. Horst Zerbe added that the company has generated “some very exciting data with our initial Phase I clinical work on Relivar – demonstrating some clear advantages over the existing FDA approved product. We believe Relivar should generate significant commercial partner interest and look forward to taking the lead on this endeavor.”