Dong-A ST to put U.S. NeuroBo under its arm for global R&D

[Provided by Maekyung Media Group]

South Korea’s Dong-A ST on Wednesday said Boston-headquartered NeuroBo Pharmaceuticals successfully raised investment, satisfying its conditional agreement for equity investment and licensing.

Nasdaq-listed NeuroBo has developed medicines derived from natural products and treatments for COVID-19.

Back in September, Dong-A ST and NeuroBo signed a conditional exclusive license agreement for NeuroBo to develop and commercialize DA-1241 and DA-1726, which are currently being evaluated for the treatment of nonalcoholic steatohepatitis (NASH), obesity and type 2 diabetes, in addition to Dong-A ST’s $15 million investment in NeuroBo.

[Provided by Maekyung Media Group]

The agreement required NeuroBo to raise more than $30 million including Dong-A ST’s commitment. NeuroBo conducted a funding round in the United States, raising $17.3 million from local investors from Oct. 28 to Nov. 8.

As the contract goes into effect, Dong-A ST will become NeuroBo’s largest shareholder next month and incorporate NeuroBo as a subsidiary.

Dong-A ST said it will leverage NeuroBo as a global R&D base for Dong-A Socio Group while accelerating efforts to develop and commercialize novel therapies licensed to NeuroBo based on the company’s geographical advantage in Boston and its easy access to the U.S. capital market.

NeuroBo plans to start a global phase 2 clinical trial of DA-1241 within the first quarter of next year with the investment money and apply for a phase 1 clinical trial of DA-1726.

By Pulse