Cogstate amends global license agreement with Eisai

Cogstate Limited (ASX: $CGS) has announced the amendment of its global license agreement with pharmaceutical company Eisai Co., Ltd. The amended agreement, effective from 01 April 2024, grants Cogstate the re-acquisition of global rights to its technology previously exclusively licensed to Eisai, excluding for Japan. The company will retain the initial Eisai upfront payment of $15 million and all royalty payments received to date. Additionally, Cogstate is set to receive future minimum royalties from April 2024 until the end of the term in August 2031, amounting to $11.5 million, while forgoing $15 million of future minimum royalties. The amendment also allows Cogstate to explore an extended role in building an integrated system to facilitate Alzheimer's patients' access to timely intervention.

Executive Commentary on Amended Global License Agreement

Cogstate's Chief Executive Officer, Brad O'Connor, expressed the company's appreciation for its partnership with Eisai in both the Clinical Trials and Healthcare segments of their business. He highlighted the upcoming USA launch of the new memory version of Cognigram, designed in collaboration with Eisai. O'Connor emphasized that the amended agreement provides Cogstate with clear rights in respect of all intellectual property and enables the exploration of additional opportunities for identifying the first signs of cognitive impairment in the community. He also expressed eagerness to investigate an extended role for Cogstate in identifying patients who may benefit from new Alzheimer's treatments.

Summary of Amended Global License Agreement and Outlook

In summary, Cogstate's amendment of the global license agreement with Eisai marks the re-acquisition of global rights to its technology, while retaining upfront payment and royalties. The company aims to explore an extended role in facilitating Alzheimer's patients' access to timely intervention. Looking ahead, Cogstate is positioned to continue its partnership with Eisai, with a focus on the USA launch of the new memory version of Cognigram. The amendment also grants Cogstate sole rights to jointly owned ancillary intellectual property created since the commencement of the Global License Agreement. This strategic move aligns with Cogstate's ambitions to advance the development of new medicines and enable earlier clinical insights in healthcare, ultimately contributing to the improvement of brain health assessments worldwide.