Summary: NLS Pharmaceutics Ltd, a Swiss biopharmaceutical company focusing on treatments for central nervous system disorders, has announced plans to merge with Kadimastem Ltd, a cell therapy company specializing in treatments for neurodegenerative diseases and diabetes. The merged entity will continue developing NLS’s dual orexin agonist (DOXA) platform, which targets sleep disorders, while other NLS assets are expected to be divested under a contingent value rights agreement. The combined company will operate under the name Kadimastem and will be listed on the Nasdaq Capital Market.
Key Takeaways:
- Merger Focus: The merger between NLS Pharmaceutics and Kadimastem will create a combined company that will continue developing NLS’s dual orexin agonist (DOXA) platform for sleep disorders, as well as Kadimastem’s product candidates for neurodegenerative diseases and diabetes.
- Business Strategy: In the merged entity, other NLS assets will be divested, with the proceeds distributed to current NLS shareholders under a contingent value rights agreement.
- Market Presence: The combined company will operate under the Kadimastem name and be traded on the Nasdaq Capital Market, which is expected to enhance its visibility and growth potential in the US market.
Swiss clinical-stage biopharmaceutical company NLS Pharmaceutics Ltd, which is developing treatments for central nervous systems disorders, has announced plans to merge with Kadimastem Ltd, a clinical-stage cell therapy company developing “off-the-shelf” allogeneic cell products for the treatment of neurodegenerative diseases and diabetes.
Under the agreement, Kadimastem is anticipated to become a wholly owned subsidiary of NLS, and the combined company is expected to operate under the name Kadimastem and be traded on the Nasdaq Capital Market.
Focus on Developing Key Therapies After Merger
Following the transaction, the parties expect to continue developing NLS’s first-in-class dual orexin agonist (DOXA) platform within the merged company. The remaining NLS assets are expected to be divested subject to a contingent value rights agreement, the proceeds of which will be distributed entirely to the current shareholders of NLS.
‟We are pleased to be working together with Kadimastem as our pipelines hold significant synergies, especially in the area of diabetes which is often associated with sleep-wake dysregulation manifesting as insomnia, excessive daytime sleepiness, and altered sleep architecture,″ says Alex Zwyer, chief executive officer of NLS, in a release.
Ronen Twito, Kadimastem’s executive chairman and president, adds in a release, “The merger with NLS will enhance our visibility to the market as a Nasdaq-listed company and strengthen our portfolio with the addition of DOXA….We believe that the exposure of the merged company to the US capital markets will enable us to develop the company’s clinical assets and increase shareholder value.”
Kadimastem‘s lead product is AstroRx, an astrocyte cell therapy in clinical development for the treatment for ALS and in pre-clinical studies for other neurodegenerative indications. IsletRx is Kadimastem‘s treatment for diabetes. IsletRx is comprised of functional pancreatic islet cells producing and releasing insulin and glucagon. IsletRx is intended to treat and potentially cure patients with insulin-dependent diabetes.
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