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MIAMI - HOPE Therapeutics™, Inc., a subsidiary of NRx Pharmaceuticals, Inc. (NASDAQ: NRXP), has entered into a financing agreement with Universal Capital, LLC to receive $7.8 million for the acquisition of interventional psychiatry clinics. With a current market capitalization of $37.21 million, InvestingPro analysis suggests NRXP is slightly undervalued at its current trading price. This investment, combined with funds from a prior strategic investment, is expected to provide HOPE with a total of $10.3 million in acquisition capital.
The funding is specifically tied to the acquisition of three clinics: Dura Medical, Kadima, and NeuroSpa, which specialize in neuroplastic treatments such as ketamine and transcranial magnetic stimulation (TMS) for severe depression, PTSD, and related conditions. These treatments have gained attention for their potential to foster new synaptic connections in the brain, leading to symptom relief, as evidenced by multiple clinical trials.
HOPE’s acquisition strategy is part of its larger goal to build a national network of clinics offering innovative mental health treatments. The initial clinics targeted for acquisition are recognized for their excellence in treating mental health disorders and currently provide services to veterans through contracts with the Veteran’s Health Administration. The company’s ambitious expansion comes amid strong market performance, with InvestingPro data showing a remarkable 90.76% price return over the past six months, though financial metrics indicate the company is quickly burning through cash with a concerning current ratio of 0.15.
Universal Capital, an investment firm aligning with HOPE’s vision, has expressed enthusiasm about the growth prospects of HOPE and is open to funding future acquisitions as the company continues to expand its network.
Dr. Jonathan Javitt and Matthew Duffy, Co-CEOs of HOPE Therapeutics, have welcomed the partnership with Universal Capital, viewing it as a significant step in the company’s development.
HOPE Therapeutics, under the umbrella of NRx Pharmaceuticals, is also developing digital therapeutic-enabled platforms to complement NMDA-targeted drug therapies. Meanwhile, NRx Pharmaceuticals is working on therapeutics for central nervous system disorders and has initiated a New Drug Application for NRX-100, a ketamine-based treatment for suicidal depression, which has been granted Fast Track Designation by the FDA.
Investors are advised that the information provided is based on a press release statement and that the Company’s forward-looking statements are subject to risks and uncertainties that could affect actual results. For comprehensive analysis including 10 key ProTips and detailed financial metrics, investors can access the full company research report on InvestingPro, which provides in-depth insights into NRXP’s financial health, valuation, and growth prospects.
In other recent news, NRx Pharmaceuticals has announced a definitive agreement for its subsidiary, HOPE Therapeutics, to acquire the Kadima Neuropsychiatry Institute. This acquisition is expected to enhance HOPE’s network of interventional psychiatry clinics and contribute positively to revenue and EBITDA. Additionally, NRx Pharmaceuticals has filed a patent application for NRX-100, a preservative-free intravenous ketamine formulation aimed at treating suicidal depression, potentially extending market exclusivity until 2045. The company has also increased its at-the-market offering to $20 million, under an agreement with H.C. Wainwright & Co., LLC, to support its financial maneuvers and capital-raising efforts.
Furthermore, HOPE Therapeutics secured a $2.5 million investment from a global medical device manufacturer to support its network of clinics focused on severe depression and PTSD treatments. This investment will aid in the acquisition of clinics specializing in interventional psychiatry treatments like ketamine therapy and Transcranial Magnetic Stimulation (TMS). BTIG analyst Thomas Schrader initiated coverage of NRx Pharmaceuticals with a Buy rating and an $18 price target, noting the company’s efforts in developing treatments for suicidal ideation and behavior. Schrader highlighted the potential of NRx’s FDA-approved intravenous ketamine and combination therapies to address unmet needs in mental health treatment.
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