NeuroBo to List on Nasdaq via Reverse Merger with Gemphire Therapeutics, Advances Phase 3 Trial of NB-01 for Diabetic Neuropathic Pain

On July 26, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that NeuroBo completed a AUD 24.2 million Series B financing through a reverse merger with Gemphire Therapeutics and will be listed on the NASDAQ. This move comes as NeuroBo initiates Phase III clinical trials of NB-01, a nerve growth factor (NGF) therapy for patients with diabetic neuropathic pain.

Gemphire has long been concerned about the safety profile of gemcabene, and these concerns were further exacerbated by animal study results showing liver tumors associated with the drug. The FDA required Gemphire Therapeutics to conduct additional studies before proceeding to Phase III trials. Following this announcement, Gemphire reduced its workforce and began exploring strategic alternatives.

Management has decided that the merger with NeuroBo is the optimal choice. The transaction will merge NeuroBo into Gemphire. Investors in NeuroBo will hold 96% of the shares in the combined company.

The merged company will operate under the name NeuroBo, focusing on advancing its lead asset, NB-01. NeuroBo will acquire the development rights to gemcabene, with a commitment to invest only $1 million by the end of March. If the drug generates profits in the coming years, 80% of the net revenue will be distributed to Gemphire’s current shareholders.

Although NeuroBo will allocate the majority of its funds to existing projects, Beijing SL Pharmaceutical may breathe new life into gemcabene. The company paid Gemphire $2.5 million to secure the patent rights for the drug in China. This transaction marks a milestone in terms of research and development and regulatory affairs.

Gemphire CEO Steve Gullans believes that the joint investment by NeuroBo and Beijing SL can help the project overcome its current difficulties. In a statement, Gullans said, “These partnerships will enable us to continue advancing gemcabene toward addressing the FDA’s partial clinical hold decision, potentially yielding beneficial outcomes for Gemphire shareholders.”

Currently, NeuroBo’s fate will be more closely tied to NB-01. With this $24.2 million Series B financing round, NeuroBo plans to initiate Phase III clinical trials for NGF therapy in the fourth quarter. To date, the funds raised represent the minimum amount stipulated in the merger agreement.

Gemphire Therapeutics is a clinical-stage biopharmaceutical company dedicated to developing commercial therapies to help patients with cardiometabolic disorders, including dyslipidemia and NASH. Gemphire’s mission is to develop novel drugs, such as gemcabene, for the treatment of patients with dyslipidemia who are unable to achieve optimal LDL cholesterol or triglyceride levels with other medications or therapies.

NeuroBo Pharmaceuticals, headquartered in Boston, USA, is a biotechnology company dedicated to providing medical services for patients with diabetic neuropathy and Alzheimer's disease. The company focuses on researching neurodegenerative diseases that affect millions of patients worldwide through imaging technologies, aiming to discover novel therapies for these patients.

(Compiled by: Xu Wenjuan)