Life Sciences, deals, Nitric Oxide

NitroMed to Get $2.6M in NO Deal

Ryan McBride 4/23/09

[[Updated: see editor's note below]]NitroMed, a Lexington, MA-based drug development firm, says it has struck a deal with French biotech firm NicOx to sell and license nitric oxide-based technology to NicOx. NicOx will pay NitroMed an initial fee of $2.6 million, and NitroMed is eligible for future payments of $5.2 million from NicOx based on certain terms. NitroMed (NASDAQ:NTMD), which makes heart failure drug isosorbide dinitrate/hydralazine hydrochloride (BiDil) for self-identified Black patients, says that the initial fee from NicOx would be distributed to shareholders if the payment is received before NitroMed closes its merger with entities affiliated with investment group Deerfield Management. The merger was approved at a stockholders’ meeting this week and is expected to close “as soon as practical.” [[Editor's note: this story was updated with the amount of future payments NitroMed could receive in this licensing deal with NicOx.]]

Ryan McBride is Xconomy's correspondent. You can reach him at rmcbride@xconomy.com, or follow him on Twitter at http://twitter.com/Ryan_McBride.