Shares of NeuroBo Pharmaceuticals Inc. (NRBO), a clinical-stage biotechnology company that provides therapies for neurodegenerative and cardiometabolic diseases, dropped by 10.89% on Friday. The company saw its shares declined to $5.12 from a previous closing price of $5.72.
Last week, NeuroBo completed the sale of its previously announced private placement of a total of 2,500,000 shares and warrants of its common stock. For total proceeds to the Company of $10.0 million, each share and accompanying warrant was sold at an overall purchasing price of $4.00. The warrants have an exercise price of $6.03 per share and are exercisable for a period of five and a half years, beginning six months from the date of issue.
On December 31, 2020, NeuroBo acquired a privately held biotechnology company ANA Therapeutics. ANA-001, which is a patented niclosamide capsule formulation for coronavirus indications, has been developed by the acquired company and is presently in Phase 2/3 clinical trials as a therapy for COVID-19. The deal was voted to approve by both the Boards of Directors of NeuroBo Pharmaceuticals as well as ANA Therapeutics.
Richard J. Kang, Ph.D., President and Chief Executive Officer of NeuroBo, said the acquisition of ANA was an exciting and disruptive move for NeuroBo that strengthens its portfolio with a late-stage health research initiative that meets the immediate need for new drugs to counter COVID-19, a highly contagious and sometimes fatal virus.
ANA-001 is progressing along the 505(b)(2) therapeutic process, which helps NeuroBo Pharmaceuticals Inc. (NRBO) to exploit earlier niclosamide and optimize results, and speeds up the processes for patients with COVID-19 to access this potentially life-saving treatment. As a result, a number of significant targets over the next 12 to 18 months are accompanied by the production schedule, including the data readout of the Phase 2 component of the trial, scheduled in the third quarter of 2021.