Interneuron Licenses Drug to Warner-Lambert

Interneuron Pharmaceuticals Inc. said it has licensed to Warner-Lambert Co. worldwide rights to its experimental drug pagoclone, for treating panic and anxiety disorders. The news pushed shares of Interneuron to a new 52-week high of $8.75 before edging back down to close at $6.88, up $2.38, on Nasdaq. Under the agreement, Warner-Lambert will pay Lexington, Mass.-based Interneuron as much as $73.75 million in an upfront payment and milestones. Warner-Lambert will conduct and fund all additional clinical development, manufacturing and marketing of pagoclone for all indications. Warner-Lambert also will pay Interneuron royalties on net sales of pagoclone in the United States and abroad. The first two target disorders for which clinical programs will be conducted are expected to be panic disorder and generalized anxiety disorder, Interneuron said. Pivotal clinical trials in these programs are anticipated to begin in 2000. Warner-Lambert shares rose $1.19 to close at $86.31 on the NYSE. (Reuters)