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ALAMEDA, Calif. - Vivani Medical, Inc. (NASDAQ: VANI), a biopharmaceutical company specializing in long-acting drug implants, announced the filing of a Form 10 registration with the SEC for its subsidiary Cortigent, Inc. to become an independent, publicly traded company on Nasdaq. Currently trading at $1.14 per share with a market capitalization of $68 million, InvestingPro analysis indicates the stock is fairly valued. The transaction is expected to be completed in the third quarter of 2025, subject to regulatory approvals and other conditions.
This strategic move aims to create two focused entities, with Vivani concentrating on developing its NanoPortal drug implant technology for chronic weight management and type 2 diabetes, and Cortigent advancing its neurostimulation devices, including the Orion Visual Cortical Prosthesis System for the blind and a Stroke Recovery System for paralysis due to stroke. According to InvestingPro data, Vivani maintains a healthy current ratio of 2.4, indicating strong short-term liquidity, though the company is currently burning through cash with negative free cash flow of $21.8 million over the last twelve months.
Vivani’s CEO, Adam Mendelsohn, Ph.D., noted the importance of this milestone in establishing Cortigent as an independent entity dedicated to pioneering neurostimulation technology. Cortigent’s CEO, Jonathan Adams, MBA, expressed confidence in the potential of their technology to address unmet medical needs beyond their current projects.
Cortigent, previously known as Second Sight Medical Products, has made significant strides in the field of precision neurostimulation technology. The Argus II, an FDA-approved artificial vision device, has been implanted in hundreds of patients with a rare form of blindness. The Orion system, which recently completed a six-year Early Feasibility Study with promising results, is now preparing for a pivotal trial.
The spin-off is designed to provide investors with a clearer understanding of the financial and operational structures of both companies and their distinct strategic priorities. Operating with a moderate debt-to-capital ratio of 0.22, the company’s financial health score is rated as ’Fair’ by InvestingPro, which offers 7 additional key insights about the company’s performance and prospects. ThinkEquity is serving as the exclusive financial advisor to Cortigent regarding the spin-off.
This announcement is based on a press release statement and contains forward-looking statements regarding the completion of the transaction and the future potential of both Vivani and Cortigent. It reflects the companies’ expectations and is subject to various risks and uncertainties.
In other recent news, Vivani Medical reported a net loss of $23.5 million for 2024, closely aligning with analyst expectations. The company has also secured $8.25 million through a private placement to support the development of its semaglutide implant, NPM-139, and the exenatide implant, NPM-115. These implants are designed for chronic weight management with potential for once or twice-yearly administration, aiming to improve medication adherence. H.C. Wainwright maintained a Buy rating on Vivani Medical, reflecting confidence in the company’s progress and setting a $4 price target. The company has completed enrollment for its Phase 1 LIBERATE-1 trial of NPM-115, with topline results expected by mid-2025. Additionally, Vivani Medical announced an expanded partnership with Okava Pharmaceuticals to develop a long-acting GLP-1 therapy for dogs, focusing on weight management. Preclinical studies have shown promising results for NPM-139, demonstrating significant weight loss in animal models. Vivani’s NanoPortal technology underpins these developments, offering extended drug delivery and potentially transforming treatment adherence.
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