GRI Bio, Vallon Pharmaceuticals to merge for advancing NKT cell regulators
GRI Bio, a privately held clinical stage biotech company, will merge with a wholly-owned subsidiary of Nasdaq-listed Vallon Pharmaceuticals in an all-stock transaction.
The combined entity is expected to operate as GRI Bio, Inc., and advance GRI Bio’s pipeline of natural killer T (NKT) cell regulators for the treatment of multiple inflammatory, autoimmune, and fibrotic diseases.
Post-closing, Altium Capital will invest around $15 million and an additional $10 million in the future in the combined entity, subject to certain terms and conditions.
The new entity is expected to use these proceeds to advance GRI Bio’s NKT development pipeline into mid-2024 with an initial focus on idiopathic pulmonary fibrosis.
David Baker — Vallon Pharmaceuticals CEO said: “GRI Bio provides an exciting opportunity for value creation by advancing a potentially deep pipeline leveraging its innovative NKT regulator technology.
“Our board and management believe the combined company will be well positioned with the potential to address shortcomings that exist with current therapeutic treatments targeting inflammation and fibrosis across a number of high-value indications.”
GRI Bio’s asset in development include GRI-0621, an inhibitor of NKT I cells for idiopathic pulmonary fibrosis, and GRI-0803, an activator of NKT II cells for autoimmune disorders.
Marc Hertz — GRI Bio CEO said: “We believe the proposed Merger and Financing will mark a transformational evolution for GRI Bio.
“We expect these transactions, including the additional Altium investment, to provide us with the necessary capital to propel GRI Bio forward in a meaningful way and to fund our planned operations into mid-2024, with the goal of realizing multiple catalytic clinical and regulatory milestones.
The transaction is expected to close in the first quarter of 2023.