NLS Pharmaceutics announces merger with Kadimastem

Published 10/03/2025, 12:10
© Kadimastem PR

ZURICH - NLS Pharmaceutics Ltd. (NASDAQ: NLSP), a Swiss biopharmaceutical company, has announced a definitive merger agreement with Kadimastem Ltd. (TASE: KDST), an Israeli cell therapy company valued at $21.75 million. Kadimastem has shown remarkable market performance, with a 252% return over the past year according to InvestingPro data. The merger, expected to close in the second quarter of 2025, aims to create a Nasdaq-traded entity with a focus on developing therapies for central nervous system disorders and diabetes.

The combined company, to be named NucelX Ltd., with a future ticker of NCEL, has received unanimous approval from both companies’ boards and is awaiting approval from NLS shareholders, the Securities and Exchange Commission (SEC), Nasdaq, and other customary closing conditions.

In regulatory developments, NLS has filed a Registration Statement on Form F-4 with the SEC, outlining the merger details. Additionally, an application has been submitted to list the merged company on Nasdaq.

Kadimastem has completed a pre-Investigational New Drug (pre-IND) meeting with the U.S. Food and Drug Administration (FDA) for its iTOL-102 therapy, a potential treatment for Type 1 Diabetes, in collaboration with iTolerance Inc.

The merger is positioned within a dynamic sector that has seen significant activity, including Novo Nordisk’s acquisition of Inversago Pharma and Roche’s purchase of Carmot Therapeutics, both for over a billion dollars, emphasizing the market’s growth and potential for innovative treatments.

Post-merger, the companies plan to initiate a Phase IIa clinical trial for AstroRx®, Kadimastem’s candidate for treating Amyotrophic Lateral Sclerosis (ALS).

NLS Pharmaceutics has reported financial stability, with no long-term debt and approximately $4.2 million raised in private placements in late 2024. For Kadimastem, InvestingPro data indicates a current ratio of 0.33, suggesting careful liquidity management will be crucial post-merger. The company is scheduled to report its next earnings on March 27, 2025. This positions the combined entity to extend its operational runway to around 18 months, allowing it to pursue its clinical and strategic goals.

The information provided in this article is based on a press release statement from NLS Pharmaceutics.

In other recent news, NLS Pharmaceutics Ltd. and Kadimastem Ltd. have announced plans to merge, with the aim of enhancing diabetes treatment through a combination of their expertise in central nervous system disorders and cell therapy. This merger is expected to result in a Nasdaq-traded biotechnology company, focusing on developing therapies for neurodegenerative diseases and diabetes. Shareholders of Kadimastem have already approved the merger, marking a significant progression in the process, with NLS planning its own shareholder meeting for ratification. The merger seeks to leverage NLS’s experience in central nervous system disorders and Kadimastem’s cell therapy platforms, including AstroRx® and IsletRx, to address unmet medical needs. The companies are developing a multi-target therapy, DOXA, designed to address systemic complications of diabetes, such as neuroinflammation and sleep disorders. Preclinical studies indicate that DOXA compounds may restore orexinergic function and enhance beta-cell survival. Both companies acknowledge the risks and uncertainties involved in the merger process, including regulatory approvals and market reactions, but express optimism about the potential benefits. Investors are encouraged to review the documents filed with the SEC for more detailed information on the proposed transaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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