Dong-A ST "Successful $32.3 Million Investment Attraction from US Neurobo"…Effectiveness of Technology Export and Equity Investment Contracts

Neurobo to Become Largest Shareholder at Next Month's Extraordinary General Meeting
Acceleration of New Drug Pipeline Clinical Trials
"To Be Utilized as a Global R&D Forward Base"

[Asia Economy Reporter Lee Gwan-joo] Dong-A ST announced on the 9th that NeuroBo Pharmaceuticals in the United States has completed an investment of 33.2 million dollars.

Earlier in September, Dong-A ST transferred the global exclusive development rights and global exclusive sales rights excluding Korea for the type 2 diabetes and non-alcoholic steatohepatitis treatment 'DA-1241' and the obesity and non-alcoholic steatohepatitis treatment 'DA-1726' to NeuroBo, and signed a global license-out and equity investment agreement to additionally acquire shares by investing 15 million dollars in NeuroBo.

According to the contract, Dong-A ST will acquire convertible preferred shares of NeuroBo with a contract payment of 22 million dollars and receive up to 316 million dollars as development milestones. In addition, it will receive commercial milestones (undisclosed) step-by-step according to the cumulative net sales scale after commercialization.

However, to complete the contract, it was prioritized that NeuroBo raise a total of 30 million dollars, including the 15 million dollars invested by Dong-A ST. Accordingly, NeuroBo conducted an investment attraction targeting public funds in the United States from the 28th of last month to the 8th of this month. Despite the tightening of the U.S. funding market, it successfully raised a total of 32.3 million dollars, exceeding the funding target of 15 million dollars by 15.3%, raising 17.3 million dollars in investment.

With the contract coming into effect, Dong-A ST will become the largest shareholder of NeuroBo at NeuroBo’s extraordinary general meeting of shareholders next month based on the shares acquired through the contract payment and investment, and NeuroBo is expected to be incorporated as a subsidiary of Dong-A Socio Group.

Dong-A ST plans to accelerate the global development and commercialization of DA-1241 and DA-1726 based on NeuroBo’s advantages of geographic location in Boston, USA, and ease of fundraising as a Nasdaq-listed company, and utilize NeuroBo as a global research and development (R&D) forward base of Dong-A Socio Group. NeuroBo plans to start the global Phase 2 clinical trial of DA-1241 within the first quarter of next year based on the secured investment funds. It also plans to apply for the global Phase 1 clinical trial investigational new drug (IND) application for DA-1726.

Kim Min-young, CEO of Dong-A ST, said, "Although the investment and capital markets have frozen due to the global economic recession, we have successfully completed the investment attraction and once again recognized the value of Dong-A ST’s R&D pipeline." He added, "We will continuously strengthen Dong-A Socio Group’s R&D competitiveness by leveraging NeuroBo as a stepping stone and accelerate our leap to become a global pharmaceutical company."

This content was produced with the assistance of AI translation services.