Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
MIAMI - HOPE Therapeutics, Inc., a subsidiary of NRx Pharmaceuticals, Inc. (Nasdaq:NRXP), currently valued at $35.18 million, has announced its intention to acquire a majority stake in Neurospa TMS Holdings, LLC, a move that aims to bolster its interventional psychiatry network in Florida. According to InvestingPro data, NRXP has shown strong momentum with a 29.19% price return over the past six months, despite facing operational challenges. Neurospa operates six clinics on the state’s Gulf Coast, providing treatments for severe depression and related conditions through methods like Ketamine infusion therapy, Transcranial Magnetic Stimulation (TMS), and Spravato®.
This acquisition, which is still subject to financial audits and definitive agreements, is expected to enhance HOPE’s revenue projections for 2025, as Neurospa is already generating revenue and has a positive EBITDA - a notable contrast to NRx’s current EBITDA of -$19.7 million. The clinics offer a spa-like environment and are led by a team of professionals who will become part of the HOPE network upon the transaction’s completion. InvestingPro analysis reveals that NRx faces significant financial challenges, with a concerning current ratio of 0.15, indicating potential liquidity constraints.
HOPE Therapeutics specializes in offering psychedelic medications combined with TMS and other neuroplastic therapies to patients with suicidal depression and related disorders. The company is in the process of developing a digital therapeutic-enabled platform to augment the clinical benefit of NMDA-targeted drug therapy.
NRx Pharmaceuticals is developing therapeutics based on its NMDA platform for central nervous system disorders and has recently initiated filing a New Drug Application for NRX-100 for the treatment of suicidal depression. The U.S. FDA has granted Fast Track Designation for the development of ketamine (NRX-100) as part of a protocol for patients with acute suicidality.
The acquisition of Neurospa is expected to play a significant role in the expansion of HOPE’s network in Florida. The transaction’s completion is contingent upon standard closing conditions, and the information provided is based on a press release statement. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and detailed financial metrics in its Pro Research Report, helping you make more informed investment decisions about NRXP and 1,400+ other US stocks.
In other recent news, NRx Pharmaceuticals has reported significant financial developments and strategic initiatives. The company announced a 33.5% reduction in operational losses for the fourth quarter of 2024, bringing the total loss down to $18.5 million. Research and development expenses also saw a significant decrease of 53.6%, attributed to the conclusion of a key clinical study. Meanwhile, NRx Pharmaceuticals has filed an abbreviated New Drug Application (ANDA) for NRX-100 and a New Drug Application (NDA) for NRX-101, both of which could lead to FDA action dates by the end of 2025.
H.C. Wainwright has maintained a Buy rating and a $19 price target for NRx Pharmaceuticals, reflecting confidence in the company’s trajectory. The analyst cited the potential for NRX-100 and NRX-101 to reach commercialization soon, bolstered by the company’s strategic moves, including planned acquisitions of psychiatry clinics. Additionally, the company has made strides in expanding its operations, with plans to acquire up to 20 psychiatric clinics in Florida by the end of 2025.
Despite these developments, NRx Pharmaceuticals’ stock experienced a decline in premarket trading. The company remains optimistic about its future, projecting profitability by the end of 2025 and aiming for 30% operating margins in its clinic network. CEO Jonathan Javitt emphasized the company’s focus on innovative treatments for bipolar depression and other psychiatric conditions, with NRX101 being highlighted as a potential breakthrough therapy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.