NLS Pharmaceutics advances Kadimastem merger with fundraising milestone

NLS Pharmaceutics Ltd., a Swiss biopharmaceutical company focused on therapies for rare central nervous system disorders, and Kadimastem Ltd., an Israeli cell therapy innovator, have announced the initial closing of $500,000 from a planned $1 million fundraising. This achievement follows approvals secured during NLS’s extraordinary general meeting on January 7, 2025. Shares were sold at $3.10, reflecting a 48% premium over the January 6 market price, underscoring investor confidence in the company’s strategy.

The fundraising strengthens NLS’s ability to execute its proposed merger with Kadimastem, a move designed to create a robust, Nasdaq-listed biotechnology firm. Both companies aim to combine their expertise to address critical gaps in treatments for neurodegenerative diseases and diabetes.

Bolstering Financial and Strategic Momentum

This funding round complements a previous $3.2 million investment announced in October 2024. Together, these efforts are pivotal in enabling the merger and ensuring adequate resources to advance clinical programs. NLS CEO Alex Zwyer stated that the financing reflects the strategic confidence stakeholders place in the combined vision of the two companies.

Kadimastem’s Executive Chairman, Ronen Twito, emphasized that this milestone reinforces their shared commitment to innovation and positions the merged entity as a leader in biotechnology.

NLS Pharmaceutics: Addressing Unmet Medical Needs

Headquartered in Zurich, Switzerland, NLS Pharmaceutics is a development-stage biopharmaceutical company specialising in central nervous system disorders. Since its inception in 2015, NLS has collaborated with leading scientists and global partners to develop innovative treatments for conditions with limited therapeutic options.

NLS’s pipeline focuses on addressing unmet needs in complex neurological disorders. Its merger with Kadimastem represents a strategic leap toward enhancing its research and market presence.

Kadimastem’s Expertise in Cell Therapy

Kadimastem Ltd., based in Ness Ziona, Israel, is recognised for its cell therapy advancements. Using its proprietary platform, the company develops “off-the-shelf” allogeneic products derived from human embryonic stem cells.

Its flagship product, AstroRx, is in clinical trials for amyotrophic lateral sclerosis (ALS) and pre-clinical studies for other neurodegenerative diseases. Another key development, IsletRx, offers a potential cure for insulin-dependent diabetes through pancreatic islet cell therapy.

Founded by Professor Michel Revel, a recipient of the Israel Prize and the inventor of the multiple sclerosis drug Rebif, Kadimastem’s legacy is rooted in scientific excellence and transformative innovation.

Merger Aims to Redefine Biotech Collaboration

The NLS-Kadimastem merger is poised to reshape the biotech landscape by leveraging the companies’ complementary expertise. The combined entity will focus on therapies addressing neurodegeneration and diabetes, leveraging a shared vision to develop groundbreaking treatments.

The merger’s regulatory and shareholder approval processes are currently underway, with both companies optimistic about the potential synergies and enhanced market competitiveness this partnership will bring.

Expert Insights and Industry Context

Biotechnology mergers, such as the one between NLS and Kadimastem, reflect a growing trend of consolidation in the sector. Industry experts note that by pooling resources and expertise, these collaborations enable faster advancements in treatments for complex diseases. The strategic premium offered in the recent fundraising also highlights investor optimism in the combined entity’s future.