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Cogstate solely license its tech to a Japanese pharma company

Health Care
ASX:CGS      MCAP $239.9M
27 August 2019 23:16 (AEST)

Cognition researchers Cogstate have licensed its technology to Japanese pharmaceutical company Eisai.

The exclusive agreement will see Eisai promote Cogstate’s technology to the Japanese market as a digital assessment tool for cognition.

Cogstate’s clinical trials will be excluded from the agreement, so the company can continue to self market them.

Eisai will pay US$1 million as an upfront royalty fee and cover any additional development costs to tailor the product for the Japanese market.

CEO at Cogstate Brad O’Connor said: “We are honoured to align with Eisai as they progress their plans to address the unmet needs of patients through innovation… as we continue to work together in the quest for a cure for Alzheimer’s disease.”

Initially, the agreement is set for 10 years, with performance reviews at year five and eight to maintain exclusivity.

Additionally, the company is looking to raise $2.86 million from shareholders, to assist in funding the scientific, operational and technical support of Cogstate’s technology in Japan.

Cogstate’s share price is up 7.69 per cent today, currently sitting at $0.21 apiece, as of AEST 3:42 pm.

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