Roche Extends Memory Pact

Roche has exercised its option to further develop and commercialize Memory Pharmaceuticals’ lead nicotinic alpha-7 agonist drug candidate, MEM 3454, for neurological and psychiatric disorders. This decision triggers a $6 million milestone payment and entitles Memory to future payments upon the achievement of additional milestones and royalties on product sales, including a $17 million milestone payment for completion of the ongoing Phase IIa study in cognitive impairment associated with schizophrenia (CIAS). Memory also retains an option to co-promote the drug in the U.S.
   
“We are excited that Roche shares our enthusiasm for MEM 3454 and its potential to address the cognitive deficits associated with debilitating CNS disorders,” stated Vaughn M. Kailian, president and chief executive officer of Memory Pharmaceuticals. “We have aggressively advanced MEM 3454 through early-stage clinical trials, including a positive Phase IIa trial in Alzheimer’s disease. We believe that Roche’s continued commitment to the program, together with its expertise in later-stage clinical development and commercialization, will provide the support and capabilities to realize the full potential of this compound.”
   
In the Phase IIa study in Alzheimer’s disease, MEM 3454 demonstrated a statistically significant effect on multiple measures of cognition. The compound is currently being evaluated in a Phase IIa trial in CIAS, with results expected in 4Q08. The trial is expected to enroll approximately 160 patients and is designed to assess the safety, tolerability and cognitive effects of three doses of MEM 3454 in CIAS patients. The two companies also recently expanded their schizophrenia development program for MEM 3454 to include a biomarker study, which will be funded by Roche. Memory expects to initiate the biomarker trial this summer, with results expected by early 2009.