NurExone Biologic Ltd. is an Israeli biotech company developing treatment to restore function in patients with traumatic CNS damage. NurExone’s approach is based on a proprietary exosome-based technology with intranasal delivery to revolutionize the treatment of acute spinal cord injury (SCI) worldwide. Preliminary results from pre-clinical trials suggest the company’s first ExoTherapy for SCI has the potential to make it big in the long run. In addition, animal studies demonstrated NurExone’s proprietary ExoPTEN treatment to promote exon-growth, and nerve regeneration, resulting in functional recovery and allowing paralyzed rats to recover motor function. For the expansion and commercialization of the technology, NurExone has a worldwide, exclusive licensing agreement with Israel’s Institute of Technology (the Technion) and Tel Aviv University.
On Sept 01, NurExone announced that it would offer 170,195 common shares of the company at a deemed price of CAD 0.80. The debt offering’s price per share is approximately 100% higher than the current share price, which is ~$0.4. In other words, those receiving the offering believe NurExone is likely to trade at least at a 100% premium to the current price. There are a number of likely reasons for this.
First and foremost, Exosome therapies are expected to address unsolved problems in the vast spinal cord injury market – According to the World Health Organization, the global SCI incidence is estimated to be 40 to 80 new cases per million population per year, with direct lifetime treatment costs per patient exceeding $1-2 million. By 2025, the total addressable market for spinal cord trauma injuries is expected to be $3.04 billion. Exosome therapy is a new frontier in therapeutics, with significant market players investing heavily in exosome technologies. According to Mordor Intelligence, the Exosome market is expected to grow at a compounded annual growth rate (CAGR) of 27.89% between 2022 and 2027. NurExone has made significant progress towards becoming the leading provider of exosome-based treatment for acute spinal cord injuries. The company was listed on the TSX.V under the symbol NRX through a reverse takeover agreement with EnerSpar Corp.
Moreover, Nurexone has a proprietary exosome technology and is ramping up towards approvals and large-scale production. NurExone is establishing a new state-of-the-art facility that the company will use to accelerate R&D activities. The company has set up a site in Haifa, Israel, and the facility is expected to be operational in Q1/ 2023.
In addition, the company is collaborating with proven partners to achieve simple administration of Exotherapy. For example, in Q2/2022, NurExone signed a collaboration agreement with Polyrizon Ltd, a clinical development stage biotech company based in Israel and partially owned by Medigus Ltd. (NASDAQ: MDGS), to develop an effective and tailored intranasal delivery formulation for the administration of their exosome-based drug platform in humans.
Finally, clients should note that NurExone is laser-focused on R&D to accelerate processes and proprietary technology for producing effective exosomes and generating substantial IP assets. The company recently announced financial results and business updates for the quarter that ended June 30, 2022, detailing significant IP and R&D milestones and an update on its FDA application. NurExone’s Research and development expenses were $0.30 million in the second quarter, up 87% year on year, owing primarily to the development of the siRNA-PTEN technology and other siRNA targets.
In conclusion, it seems NurExone has achieved significant milestones in 2022 as it works to advance the development of its groundbreaking ExoTherapy. The company is preparing for an INTERACT meeting with the FDA to receive the necessary guidelines for submitting a Pre-Investigational New Drug application as it moves forward with a pre-clinical study. The company is on the right track, as highlighted in the most recent advancements, to improve the outlook for patients with spinal cord injuries and to open the door for novel therapies for other CNS traumatic indications.