ANAVEX MEETS ENDPOINTS PHASE2 RETT, page-159

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What A Gas

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04/01/24

07:53

Post #: 71718082
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IMO, this represents a 'potential' glaring error in the wording of the contract, because if push came to shove, Acadia would very likely succeed in any litigation, simply due to a literal reading of the contract wording.

I say 'potential', because (once again IMO) it is quite unlikely that the two companies would engage in a dog fight, when there is a high probability that any TO of Neuren would involve a simultaneous or subsequent TO of Acadia, by the acquiring company, giving it total ownership of the original Neuren technology.

So perhaps the loose contract wording may have been overlooked due to recognition of the likelihood of the above scenario playing out.

[Lots of holes there I guess, but at least it puts MY mind at rest.]

Originally posted by hottod: ↑

I’m not a lawyer, but with respect to contracts, my view is that you must always anticipate the worst case scenario and assume lack of good faith rather than anticipate the best case scenario and assume good faith. Sorry if that sounds cynical on my part.

But even if I don’t take a cynical “worst case scenario” view, I know that contractual lawyers will.

Yes, there is the Joint Steering Committee provided for in the licensing contract to address further development but, my understanding is that under the terms of the contract, if Neuren or a Third party proposes development of NNZ-2591 in indications other than the present ones, and if Acadia happens to disagree and subsequent discussion between the CEOs of Acadia and Neuren fails to resolve the issue, the matter goes to arbitration. Trust me, that’s really not something that you want.

In summary, the contract between Acadia and Neuren may have been designed with the simple intention that, in the event that 2591 is superior, it can’t just be rolled out to render trofinetide redundant, as Acadia have invested heavily in trofinetide.

But, as I think I’ve already made clear, I never, ever, approach contracts assuming simple intent in design or best case scenarios.

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NEU Price at posting: $24.45 Sentiment: Hold Disclosure: Held
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