The NUVO contract with Bayer that follows was not for all cash up front...

All it did was a ``RECOGNITION`` by an 800 pound Gorilla of the value of what NUVO has to offer...

EDIG deparately needs that ``Recognition``... It needs the affirmation of its technology by an 800 pound Gorilla bad.

Gil...

bizjournals.com

Nuvelo soars more than 40% on Bayer deal

Thursday January 5, 5:37 pm ET

Stock in Nuvelo Inc. soared more than 40 percent on Thursday after it agreement with Bayer HealthCare AG that could bring it up to $385 million.

Under the terms of the agreement, San Carlos-based Nuvelo (Nasdaq: NUVO - News) is giving Bayer rights to commercialize its blood clot dissolver alfimeprase in all territories outside the country.

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Nuvelo will retain all commercialization rights and profits from alfimeprase sales in the US. Its stock hit a 52-week high of $12.89 in morning trading before finishing the day at $12.67, up $3.66. It has traded in the past year in a range between $5.75 and $12.60.

Alfimeprase, a blood clot dissolver in Phase 3 clinical trials, is an enzyme based on recombinant DNA technology that rapidly dissolves blood clots. In clinical studies, the drug has degraded peripheral arterial clots within four hours and cleared occluded catheters in 15 minutes or less without causing excess bleeding. Analysts say the drug could be on the U.S. market by 2008.

Nuvelo`s potential $385 million in payments include a $50 million up-front cash payment, up to $165 million in development milestones and $170 million in sales and commercialization milestones over the course of the agreement. In addition, Bayer will be responsible for 40 percent of the costs for global development programs while Nuvelo will be responsible for 60 percent of the costs and remain the lead for the design and conduct of the global development programs.

In 2006, Nuvelo expects to receive payments totaling $90 million, including the $50 million up-front payment and an additional $40 million in shared development expenses and a milestone payment for initiating a Phase 2 proof-of-concept trial in stroke.

Published January 5, 2006 by the Silicon Valley/San Jose Business Journal