RespireRx Pharmaceuticals (OTCQB:RSPI) said it has signed a letter of intent with a bespoke clinical research organization in Australia that focuses on cannabinoid and psychedelic clinical research.
Upon reaching a definitive contract, RespireRx said it will make a US$50,000 deposit to be applied to the final studies budget and credited against the first invoice.
According to RespireRx, the CRO is expected to provide full services, including regulatory, compliance, good manufacturing practices manufacturing services in addition to human pharmacokinetic and pivotal human efficacy and safety studies of its drug dronabinol for the treatment of obstructive sleep apnea.
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The Glen Rock, New Jersey-based company said this is the first step in a series of transactions.
The first of those is the formation of an Australian subsidiary of RespireRx, possibly to be named ResolutionRx, to engage in the research and development activities that will be the subject of the definitive contract. The company said it intends to start the formation of its Australian subsidiary as soon as practical.
RespireRx said the final budget for the work is expected to be around US$17 million.
The company said it would participate in the Australian research and development tax credit program, which offers rebates of 43.5%. It also said it needs to identify one or more additional sources of capital to fund the balance of the R&D and the non-R&D overhead.
Contact the author at susie@proactiveinvestors.com