NRBO - NeuroBo stock soars 35% on license deal with Dong-A for NASH obesity drugs

Boston-based NeuroBo Pharmaceuticals' ( NASDAQ: NRBO ) stock rose ~35% on Sept. 15 after it signed an agreement to license its shareholder Dong-A's two cardiometabolic assets DA-1241 and DA-1726.

DA-1241 is being developed to treat nonalcoholic steatohepatitis (NASH) and type 2 diabetes, while DA-1726 is being developed to treat NASH and obesity, NeuroBo said in a Sept. 15 press release.

Under the agreement, South Korea-based Dong-A will receive $22M upfront in Series A convertible preferred stock; will be eligible to receive commercial, and regulatory-based milestone payments; and royalties.

Dong-A has also agreed to commit $15M to finance the assets, subject to NeuroBo's ability to get additional financing under the licensing deal.

NeuroBo will be responsible for global development, regulatory and commercial activities other than for certain Asian-Pacific regions.

Dong-A will make clinical supplies and initial commercial supplies of the product at its manufacturing facility in Korea, the company added.

"Through this agreement, Dong-A, one of our largest shareholders, has reaffirmed its commitment to remain a long-term strategic partner of NeuroBo. Dong-A is dedicated to our success and we are grateful it has also committed to provide continued support to facilitate the clinical development of the licensed assets," said NeuroBo President and CEO Gil Price.

The license agreement is expected to close in Q3 2022, subject to getting third party financing for developing the assets and other closing conditions.

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