Article: COCENSYS AND SEARLE TO COLLABORATE ON DEVELOPMENT/MARKETING OF NOVEL INSOMNIA TREATMENT

IRVINE, Calif., May 21 /PRNewswire/ -- An agreement to co-develop and co-promote a novel treatment for insomnia - an affliction that affects more than a third of all American adults - was announced today by CoCensys, Inc. (Nasdaq: COCN) and Searle, a wholly owned subsidiary of Monsanto Company (MTC).

Under the deal, Searle will make an up-front payment of $10 million for CoCensys' lead sleep-promoting compound, called CCD 3693, along with its back-up molecules. The up-front payment includes a $3 million licensing fee and a $7 million equity investment in preferred stock convertible to common stock. With the licensing fee, milestone payments and Searle's share of the ...

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