Neuralstem Inc. (AMEX:CUR) reached a settlement in its intellectual property lawsuit against ReNeuron Ltd.
The deal closed the litigation between the two companies that began in April 2008, when Neuralstem sued ReNeuron over the alleged theft of trade secrets related to its central nervous system stem cell technology.
Neuralstem entered into a material transfer agreement with ReNeuron, a unit of Surrey U.K.-based ReNeuron Group plc (LON:RENE), in Feb. 2002. The MTA did not result in its proposed joint venture between the two companies, but Neuralstem alleged that ReNeuron filed two patents in 2005 and an investigational new drug application with the Food & Drug Administration in 2006 using IP related to the companies agreement, according to court documents filed with the U.S. District Court for Central California.
The settlement agreement between the two companies is confidential, but resolves all claims asserted by Neuralstem against ReNeuron, according to Neuralstem. The agreement stipulates that ReNeuron "immediately" compensate Neuralstem and make future milestone and royalty payments to the company "based on ReNeuron’s development of certain products at issue in the case," according to Neuralstem.
“We are pleased to have settled this dispute and that the parties have put this matter behind them,” Neuralstem CEO Richard Garr said in prepared remarks.
Back in August, Neuralstem asked the FDA for permission to begin a clinical trial of a chronic spinal injury treatment using stem cells.