NLS and Kadimastem to merge, aim for diabetes care innovation

ZURICH and NESS ZIONA, Israel - NLS Pharmaceutics Ltd. (Nasdaq: NLSP) and Kadimastem Ltd. (TASE: KDST) announced plans for a merger, aiming to enhance diabetes treatment by combining their expertise in central nervous system disorders and cell therapy. The merger is expected to create a comprehensive approach to managing diabetes, a disease that affects more than just metabolism, involving the central nervous system and immune function. According to InvestingPro data, Kadimastem’s stock has shown remarkable momentum, delivering a 218% return over the past year and currently trading near its 52-week high of $5.19.

The companies are developing DOXA, a multi-target therapy designed to address systemic complications of diabetes, including neuroinflammation and sleep disorders, which are not fully managed by current GLP-1 receptor agonists. DOXA targets orexin signaling, sigma-1 receptor modulation, cathepsin inhibition, and SGLT2 modulation, with the aim of improving energy balance, cognitive function, and metabolic stability.

Preclinical studies, which will be presented at the 2025 ASCP Annual Meeting, indicate that DOXA compounds can restore orexinergic function, reduce inflammatory markers, and enhance beta-cell survival, suggesting a potential for disease-modifying effects. Additionally, when combined with islet transplantation, DOXA may set new standards in diabetes care.

The anticipated merger is expected to position NLS and Kadimastem as leaders in diabetes innovation, leveraging their combined research strengths to address neurodegenerative and metabolic diseases more effectively. With a current market capitalization of $21.16 million, Kadimastem operates with moderate debt levels, though InvestingPro analysis indicates some financial health concerns with a current ratio of 0.33. The companies believe that the strategic integration will provide enhanced value to patients and create long-term investment opportunities. Unlock comprehensive financial insights and 8 additional ProTips about Kadimastem with an InvestingPro subscription.

Dr. Eric Konofal, Chief Scientific Officer of NLS, emphasized the importance of targeting neurological and systemic disruptions in diabetes treatment. Alex Zwyer, CEO of NLS, and Ronen Twito, CEO of Kadimastem, expressed their optimism about the merger’s potential to deliver comprehensive therapeutic options and improve patient outcomes.

The forward-looking statements in this announcement are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially. The companies have filed relevant documents with the SEC, and investors are encouraged to read these materials carefully for more information about the proposed transaction.

This news is based on a press release statement. For detailed financial analysis, valuation metrics, and expert insights about Kadimastem and other biotech companies, visit InvestingPro.

In other recent news, Kadimastem Ltd. and NLS Pharmaceutics Ltd. are progressing with their merger plans, following approval from Kadimastem’s shareholders. The merger, set to create a Nasdaq-traded biotechnology company, will combine NLS’s expertise in central nervous system disorders with Kadimastem’s cell therapy platforms, AstroRx® for ALS treatment and IsletRx for diabetes. This development is expected to address unmet medical needs and enhance value for shareholders.

However, the companies remain cautious, acknowledging potential risks and uncertainties that could impact the merger process and outcomes, including regulatory approvals and market reactions. These recent developments mark a significant progression in the merger process, with NLS planning its own shareholder meeting to ratify the merger. Ronen Twito, CEO of Kadimastem, and Alex Zwyer, CEO of NLS, both expressed anticipation for the merger’s potential to leverage the joint strengths of both companies in biotechnology. Further details about the merger will be available through documents filed with the SEC.

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