NeuroVive Pharmaceutical AB (Nasdaq Stockholm: NVP) today announced that it intends to initiate a process with the aim to transfer the rights to develop and commercialize its NeuroSTAT program into a new company based in the US. The effort is in line with NeuroVive’s strategy to focus its resources on its primary mitochondrial disease (PMD) projects, KL1333 and NV354. The process will start immediately with the plan to, subject to funding, establish the new company (NewCo) during the second half of 2020.
The plan to transfer the NeuroSTAT assets to NewCo is a further step towards focusing the company towards its core primary mitochondrial disease programs (PMD), KL1333 currently about to enter into the patient part of the ongoing a Phase Ia/b study and preparing NV354 for a Phase I trial planned to start the first half of 2021. NeuroVive will license development and commercial rights for NeuroSTAT to the NewCo once established with the exception of rights for the Asian market, which will remain within NeuroVive Asia Ltd.
The purpose of establishing a NewCo is to increase the possibilities to create value in the Phase II ready NeuroSTAT clinical program in the US, where FDA has approved the IND and given the program a Fast Track designation.
“Management and the Board are convinced that given the focus on the PMD strategy, a spin out of NeuroSTAT may ensure value generation, for TBI patients, as well as for our shareholders. Through the increased focus on our PMD projects we can dedicate our resources and proceeds from the proposed rights issue on KL1333 and NV354”, said Erik Kinnman, CEO at NeuroVive.
NeuroVive aims to appoint and work closely with appropriate US based advisors to optimize the incorporation of the NewCo as well as exploring a long-term funding strategy for NeuroSTAT.