Pharmaceutical company Neurelis has signed an agreement with Biotie Therapies, a specialized drug development company, to develop intranasal diazepam (NRL-1) and provide Biotie with the exclusive option, but not the obligation, to acquire all outstanding shares of Neurelis.

Biotie will pay $1 million to Neurelis for the exclusive option to acquire all outstanding shares of Neurelis. During the option period, Biotie will conduct the development program for NRL-1 and work with Neurelis to advance the program with the FDA in preparation for the NDA submission. If the option is exercised and the merger consummated, Biotie will pay $8.75 million, subject to certain adjustments, in new ordinary shares of Biotie. Stockholders of Neurelis also will be eligible to receive additional milestone payments based on certain regulatory and commercial milestones.

NRL-1 is a proprietary formulation of diazepam delivered via a commercially available nasal sprayer.  It is being developed for patients who require intermittent use of diazepam to control bouts of acute repetitive seizure activity.