NRx Pharmaceuticals receives $5M milestone payment

NRx Pharmaceuticals announced the advance of the first $5M milestone payment based on the company’s partnership agreement with Alvogen and Lotus Pharmaceutical. Under the terms of the updated agreement, the company will immediately receive $5M of the first milestone, which NRx will use to fund development of NRX-101 through the phase 2 meeting with FDA. As compensation for advancing the milestone, Alvogen and Lotus will receive 4.1 million warrants to purchase the company’s common stock, at a strike price of 40c with a 3 year term. The second portion of the milestone will be $4M and, as before, be triggered by a positive response to the company’s planned end of phase 2 meeting with FDA. NRx then remains eligible to receive up to $320M in future development and sales milestones, as well as royalty payments escalating to mid-teen percentages on Net Sales, subject to achievement of certain sales volumes. Additionally, Alvogen and Lotus will be responsible for future development and commercialization costs for NRX-101 in treatment of bipolar depression with suicidality.