PainReform invests in LayerBio to expand into ophthalmology

TEL AVIV - PainReform Ltd. (NASDAQ:PRFX), currently valued at $2.78 million in market capitalization, announced Thursday it has signed a strategic investment agreement with Boston-based LayerBio Inc., a private biotechnology company developing non-opiate treatments for ophthalmic surgery. According to InvestingPro data, while PainReform holds more cash than debt on its balance sheet, the company has been quickly burning through its cash reserves.

Under the agreement, PainReform will acquire a majority equity stake in LayerBio and secure a majority position on its board for an investment of up to $3 million, contingent upon milestone achievements. The initial investment of $600,000 will be made upon closing, with the remainder provided in tranches as development goals are met. With a current ratio of 1.81, the company maintains adequate liquidity for its near-term obligations, though InvestingPro analysis reveals 8 additional key financial indicators that subscribers can access to better understand the company’s financial position.

The transaction, expected to close by the end of July, marks PainReform’s strategic expansion into ophthalmology while it continues to advance its lead candidate PRF-110 for post-operative pain in general surgery.

LayerBio’s lead product, OcuRing-K, is a sustained-release intraocular ring designed to deliver anti-inflammatory and analgesic agents following cataract procedures. The device aims to replace traditional post-surgical eye drops, potentially addressing challenges of poor absorption, low patient compliance, and ocular surface complications.

Dr. Ken Mandell, a Harvard-trained ophthalmologist and biotechnology entrepreneur, will continue to lead LayerBio as CEO. Mandell, who holds over 15 U.S. patents, is co-inventor of TYRVAYA for dry eye disease and has overseen multiple clinical trials throughout his career.

According to the press release, LayerBio will use the investment proceeds to fund a planned Phase II clinical trial of OcuRing-K under an FDA-approved protocol.

With approximately 3 million cataract surgeries performed annually in the United States, PainReform sees significant market potential for the dropless therapy technology. The company’s stock has experienced significant volatility, trading at $1.38, down 88% over the past year. Discover comprehensive financial analysis and Fair Value estimates for PRFX and thousands of other stocks with an InvestingPro subscription.

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