NeuroRX Completes $1.5 Billion SPAC Merger


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Israeli drug development company NeuroRX has announced the completion of the merger of a Special Purpose Acquisition Company (SPAC) with US company Big Rock Partners Acquisition Corporation (NASDAQ: BRPAU). The deal reflects the company’s $1.5 billion valuation of NeuroRX and the company will receive cash totaling $140 million after the merger. The combined company began trading on the Nasdaq as NrX Pharmaceuticals (Nasdaq: NRXP). NeuroRX shareholders will own 93% of the combined company. NeuroRX was founded by Chairman and CEO Dr. Jonathan Javet and his brother Professor Daniel Javet, who invented the company’s technology, who both owned a 50% stake in NeuroRX prior to the merger, and their stake in the company would amount to approximately $700 million after the merger. The company currently has no plans to issue new shares and the existing shareholders have no plans to sell shares. NeuroRX has developed two main therapies. The first is called Zyesami and is designed to treat respiratory failure in the advanced and more difficult stages of Covid. The drug is in phase III clinical trials and the company plans to submit it for emergency approval from the US Food and Drug Administration (FDA) before the trial is completed. The goal is to apply for approval in about one month. The Swiss company Relief Therapeutics, which co-developed the drug with NeuroRX, is traded on the Swiss stock market with a market capitalization of about $700 million. In one of the experiments, the company was asked to show a decrease in the death rate from the Corona virus due to its drug, but it was not able to prove this among a group of patients, although it succeeded in reducing the number of days spent in hospital, and effectiveness in other parameters such as the number of days of recovery. The company is now trialling the drug in lower-risk patients. NeuroRX’s second product is a drug for the treatment of suicidal bipolar depression. This has also been touted as a great product by the FDA, so it is expected that it will follow the screening approval process. The drug has already successfully passed Phase 2 trials, which showed patients remained in remission from depression for longer after using ketamine, compared to the control group. Published by Globes, Israel business news – en.globes.co.il – May 31, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021


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