Commitments and Contingencies

9 Months Ended

Sep. 30, 2011

Commitments and Contingencies

Note 3.  Commitments and Contingencies

Stem Cell Technology Agreement

In 2009, Novartis Pharmaceuticals acquired Opexa’s stem cell technology platform, which had been in early preclinical development, and took over all future responsibilities and opportunities for this technology, although Opexa retained an option on certain manufacturing rights. As part of the transaction, Opexa was paid an upfront fee of $3 million and a milestone payment of $500,000 for certain technology transfer activities. Opexa remained eligible to receive a second technology transfer milestone fee in addition to potential clinical and commercial milestones and royalty payments from the sale of any products resulting from the use of the technology.

As further described below in Note 6 (Subsequent Events), on November 2, 2011, Opexa re-acquired the stem cell assets transferred to Novartis in exchange for a release with respect to any further payment obligations owed to Opexa by Novartis, including the remaining $500,000 technology transfer milestone payment.  A related license agreement with the University of Chicago was also assigned back to Opexa.