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Tivic Health Systems , Inc. (NASDAQ:TIVC), a medical device company specializing in bioelectronic medicine with a market capitalization of $2 million, announced on Monday that it has exercised an exclusive option to extend its licensing agreement with Statera Biopharma, Inc. for the development of a treatment for Neutropenia, a condition characterized by an abnormally low count of neutrophils, a type of white blood cell. The company’s stock, which has seen significant volatility recently, is currently trading at $4.82, marking an 11.3% gain over the past week. According to InvestingPro analysis, the stock appears to be trading below its Fair Value.
Under the terms of the original agreement dated February 11, 2025, Tivic Health paid Statera a license fee of $1.5 million, which included both cash and stock considerations, for the rights to Entolimod, a proprietary Toll-like Receptor 5 (TLR5) agonist program. The new option grants Tivic Health exclusive worldwide rights to further indications of this program, specifically for Neutropenia. InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 9.7, indicating robust ability to meet short-term obligations.
To facilitate this expansion, Tivic Health has issued additional equity securities to Statera and Avenue Venture Opportunities Fund, L.P., consisting of 55,704 shares of common stock and 131.1267 shares of Series A Preferred Stock. This issuance is part of an advanced milestone payment arrangement related to the development progress of the treatment.
The transaction is exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder, with the securities being issued only to accredited investors.
As a result of exercising the option, Tivic Health is committed to continuing the development and commercialization of the licensed product for Neutropenia, including meeting specific development milestones and making related milestone payments.
The original licensing agreement and the terms of the securities purchase agreement with Statera are detailed in the Exhibit 10.1 and Exhibit 10.2 of the Form 8-K filed by Tivic Health on February 12, 2025. This expansion is part of Tivic Health’s strategic initiative to broaden its portfolio of bioelectronic medicine solutions and enhance its offerings in the electromedical sector. Looking ahead, analysts project 9.3% revenue growth for fiscal year 2025. For deeper insights into Tivic Health’s financial health and growth prospects, including 16 additional ProTips and comprehensive analysis, visit InvestingPro for the full research report. The information for this report is based on a press release statement.
In other recent news, Tivic Health Systems reported a notable 33% decline in revenue for Q1 2025, totaling $800,000 compared to the previous year’s $1.2 million. Despite this revenue drop, the company’s net loss improved to $5.7 million from $8.2 million, indicating effective cost management. Tivic has acquired exclusive rights to a Phase Three drug, Entelimod, and is prioritizing its commercialization. The company plans to file for an FDA Biologics License Application within 18 months, with potential product orders expected in two years. Additionally, Tivic expanded its patent portfolio and is focusing on the immunotherapy and neuromodulation markets. The firm recently closed an equity line of credit worth $25 million, which provides flexibility for funding its development stages. CEO Jennifer Ernst emphasized the transformative changes at Tivic, highlighting the company’s strategic shift towards a diversified therapeutics focus.
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