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Cerecor sells depression drug to Janssen Pharmaceuticals

Cerecor Inc. sold all rights for CERC-501 to Johnson & Johnson's Janssen Pharmaceuticals Inc. for initial gross proceeds of $25 million.

Of the gross proceeds, $3.75 million was deposited into a 12-month escrow to secure future indemnification obligations to Janssen, as well as a potential future $20 million regulatory milestone payment.

CERC-501 is an oral kappa opioid receptor antagonist being developed to treat major depressive disorder and substance use disorders.

Janssen Pharmaceuticals will now be responsible for the drug's ongoing clinical trials as well as new development and commercialization.