Neurex Corp. and corporate partner Warner-Lambert Co. extendedfor three years their collaboration on the development of drugs toprevent brain damage caused by head trauma, heart bypass surgeryand stroke.

The collaboration's lead compound, Neurex's SNX-111, is in PhaseII trials for head trauma and heart bypass patients. Warner-Lambert isexpected to begin Phase III studies in early 1997.

SNX-111 is a chemically synthesized peptide derived from thevenom of cone snails. The drug is designed to block neuron-specificcalcium channels, which transmit pain sensations and trigger a seriesof events leading to nerve cell damage from lack of oxygen.

Neurex, of Menlo Park, Calif., is evaluating SNX-111 for chronicpain conditions in Phase III trials in collaboration with MedtronicInc., of Minneapolis. Neurex expects to file a new drug applicationby the end of 1997 with the FDA.

The alliance with Warner-Lambert, of Morris Plains, N.J., began in1993 focusing on ischemic damage associated with reduction ofblood flow and oxygen to the brain.

Since then Neurex has received $10 million in equity investments, $3million in milestone payments and additional research funds, saidPaul Goddard, Neurex's chairman and CEO.

In extending the partnership, Warner-Lambert will contribute fundingand milestone payments over three years to support a team of about12 scientists working on second generation SNX-111 drugs andcompounds that block another type of neuron-specific calciumchannel. Those estimated payments would total about $6 million.

In addition, Warner-Lambert will take over clinical development ofSNX-111 as it enters Phase III trials.

For chronic pain, Neurex is using Medtronic's implantable pump todeliver the drug to the spine in an effort to prevent nerve cells fromsending pain signals to the brain.

Neurex also has begun a clinical trial to evaluate SNX-111 in treatingpain following surgery. The company has full rights to the drug inthat application.

Goddard said the drug will be administered during and after aninvasive medical procedure. In addition to preventing post-surgicalpain, investigators will try to determine if using SNX-111 can reducereliance on anesthetics. The potential benefit of the latter, Goddardsaid, would be in speeding recovery of consciousness and in reducingrisk of anesthesia-related complications.

Neurex also said it is changing its fiscal year, which ends Sept. 30, toconform with the calendar year. The company's fourth quarter 1996report will be released in early November, Goddard said, and Neurexwill issue a fifth fiscal report for 1996 at the end of December.

Neurex's stock (NASDAQ:NXCO) closed Friday up $0.875 to$15.50. n

-- Charles Craig

(c) 1997 American Health Consultants. All rights reserved.