In Search of NeuroSearch

NeuroSearch AS 's February deal with Germany's Boehringer Ingelheim GMBH for the worldwide development and marketing of its novel Alzheimer's and Parkinson's treatment, NS2330, secured the company a $20 million down-payment and a potential $60 million in milestones [See Deal]. Boehringer will also pay for the rest of NS2330's development, as well as all production and marketing costs, and NeuroSearch will receive double-digit royalties should the drug make it to market. But this transaction—impressive by 2002 dealmaking standards—was important for more than just its financial terms. Coincident with the company's decision to drop three of its most advanced development projects in late 2001 and early 2002, it provided a strong endorsement of the science behind NS2330—and of NeuroSearch's entire ion channel-based discovery engine.

Unexplained toxicology problems in preclinical studies doomed the phase II depression treatment NS2389, which NeuroSearch was developing with GlaxoSmithKline...