CAMBRIDGE, Mass. - NeuroBo Pharmaceuticals (NASDAQ:NRBO), Inc., a biotech firm specializing in cardiometabolic disease treatments, has announced a strategic realignment that includes changing its corporate name to MetaVia Inc., effective November 29, 2024. In conjunction with the rebranding, the company's common stock will start trading on the Nasdaq Stock Market under a new ticker symbol, MTVA, from the same date.
The company's CUSIP number and transfer agent will remain the same, and shareholders are not required to take any action due to the name change or the new ticker symbol. This rebranding is not expected to affect NeuroBo's operations, management, or structure.
Hyung Heon Kim, President and CEO of NeuroBo, stated that the name change to MetaVia represents the culmination of the company's shift toward developing innovative therapies for cardiometabolic diseases. This transition follows the in-licensing of two next-generation assets from Dong-A ST Co., Ltd., aimed at the obesity and metabolic dysfunction-associated steatohepatitis (MASH) markets.
The company is currently developing DA-1726, an oxyntomodulin (OXM) analog acting as a dual agonist for the glucagon-like peptide-1 receptor (GLP1R) and glucagon receptor (GCGR), for obesity treatment. It is also developing DA-1241, a G-protein-coupled receptor 119 (GPR119) agonist for treating MASH.
MetaVia remains well-capitalized following a successful June financing, which raised up to $70 million in aggregate gross proceeds. In December 2024, the company expects to report data from a Phase 2a clinical trial for DA-1241 and anticipates top-line data from a Phase 1 clinical trial for DA-1726 in the first quarter of the following year.
This article is based on a press release statement from NeuroBo Pharmaceuticals, Inc. The company cautions that forward-looking statements within the press release are subject to risks and uncertainties and invites interested parties to review its filings with the Securities and Exchange Commission for further details.
In other recent news, NeuroBo Pharmaceuticals reported positive preliminary data from the first part of its Phase 1 clinical trial for obesity drug DA-1726. The trial showed favorable safety, tolerability, and pharmacokinetics among 45 obese but otherwise healthy participants. The company has also received shareholder approval for a substantial issuance of shares, potentially increasing the company's common stock by more than 20%. This move could provide NeuroBo with additional capital for its research and development endeavors.
NeuroBo has initiated the multiple ascending dose Part 2 of its Phase 1 clinical trial for DA-1726 ahead of schedule. The Maxim Group has initiated coverage on NeuroBo shares, assigning a Buy rating, citing the development of both DA-1726 and DA-1241. The company has also secured $20 million through a private placement and registered direct offering, with potential for an additional $50 million upon the full exercise of associated warrants.
In partnership with Dong-A ST Co. Ltd. and ImmunoForge, NeuroBo is developing a once-monthly obesity treatment using a novel technology aimed at extending the drug's half-life. Additionally, NeuroBo has licensed NB-01, a drug candidate for painful diabetic neuropathy, to MThera Pharma, who will conduct further research and potentially initiate a Phase 3 clinical trial. These recent developments highlight NeuroBo's commitment to advancing its clinical trials and reflect the potential of its drug candidates.
InvestingPro Insights
As NeuroBo Pharmaceuticals transitions to MetaVia Inc., investors should be aware of several key financial metrics and trends highlighted by InvestingPro. The company's market capitalization stands at a modest $19.13 million, reflecting its current position in the biotech sector.
InvestingPro Tips reveal that NeuroBo is "quickly burning through cash" and is "not profitable over the last twelve months." These factors are particularly relevant given the company's focus on developing new therapies, which typically require substantial investment before generating revenue. The negative operating income of -$28.89 million for the last twelve months underscores this challenge.
Despite these financial pressures, an InvestingPro Tip notes that NeuroBo "holds more cash than debt on its balance sheet," which could provide some financial flexibility as it pursues its development pipeline. This is crucial as the company approaches important clinical trial milestones in the coming months.
Investors should also note that the stock has "taken a big hit over the last week" and is "trading near 52-week low," according to InvestingPro Tips. The 1-week price total return of -16.85% and the 6-month return of -52.36% illustrate the recent downward pressure on the stock price. This performance may reflect market uncertainty about the company's strategic shift and upcoming trial results.
For those considering an investment in MetaVia (formerly NeuroBo), it's worth noting that InvestingPro offers 14 additional tips that could provide further insights into the company's financial health and market position. These additional tips could be particularly valuable as investors assess the potential impact of the company's rebranding and focus on cardiometabolic therapies.
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