Maks_Lab
Diffusion Pharmaceuticals (NASDAQ:DFFN) is merging with privately held EIP Pharma in an all-stock deal.
The combined company — which is expected to be renamed as CervoMed and trade under a new ticker, CRVO — will focus on advancing EIP Pharma’s lead drug product neflamapimod, which is being developed to treat dementia with Lewy bodies (DLB).
The combined company and continue to trade on the Nasdaq Capital Market under a new ticker symbol, CRVO.
Under the agreement, the equity and convertible debt holders of EIP Pharma are expected to own ~77.25% of the combined company, while Diffusion stockholders are expected to own the remaining ~22.75%.
The combined company will be headquartered in Boston and EIP Pharma’s CEO John Alam will take up the role of CEO.
Diffusion’s CEO Robert Cobuzzi Jr. will serve as COO, while William Tanner will take up the role of CFO of the combined company.
EIP Pharma Chair Sylvie Gregoire will serve as chair of the Board for the combined company.
EIP Pharma expects to start a phase 2b trial of neflamapimod in Q2 2023, funded in part by a $21M grant from the National Institute of Aging.
The combined company expects to have a cash runway through phase 2b clinical data of the drug and to the end of 2024.
“With this proposed merger, we are creating a leading company focused on developing treatments for neurodegenerative diseases, beginning first with neflamapimod for the treatment of dementia with Lewy bodies, the second most common type of dementia after Alzheimer’s disease, and for which there are currently no approved treatments,” said EIP Pharma CEO John Alam.
The transaction has been approved by the boards of both companies and is expected to close in mid-2023, subject to approvals by EIP Pharma and Diffusion stockholders, among other things.
DFFN +0.40% to $4.9 premarket March 30
