Atopic dermatitis drug developer North Immunology to enter Nasdaq through reverse merger, with clinical trial ahead

North Immunology will enter Nasdaq through a reverse merger to develop a new treatment for atopic dermatitis.

According to Fierce Biotech on the 17th (local time), North Immunology announced the previous day that it would merge with Nasdaq-listed Athlon Medical. Athlon Medical has focused on developing the Hemopurifier device, which filters blood, but the merged company will operate around North Immunology’s bispecific antibody pipeline for immune and inflammatory diseases.

The lead candidate in the pipeline is NOR-101, a half-life-extended anti-IL-13/anti-IL-18 bispecific antibody. The company plans to begin clinical trials of NOR-101 early next year, obtain interim data in the middle of next year and secure phase 2b data in 2028.

Atopic dermatitis is the most common form of eczema and is accompanied by dry, scaly skin and severe itching. The market is led by Sanofi and Regeneron’s Dupixent, Eli Lilly’s Ebglyss and AbbVie’s JAK inhibitor Rinvoq.

North Immunology has said that a bispecific antibody that simultaneously suppresses type 2 and non-type 2 inflammation has the “potential to provide the best treatment for the disease” to patients with atopic dermatitis.

Mohit Gupta, chief scientific officer (CSO), said, “Although monoclonal antibodies targeting type 2 inflammation have transformed atopic dermatitis treatment, the majority of patients still live with a substantial disease burden.”

Jonathan Bar, chief executive officer (CEO), said, “We are encouraged by NOR-101’s preclinical profile, including a half-life of approximately 42 days and promising bioavailability identified in a nonhuman primate pharmacokinetic (PK) study,” adding, “We look forward to executing a clinical development plan that is expected to produce multiple data readouts through 2028.”

The clinical roadmap will be funded with $180 million (approximately 241.2 billion won) raised through a private placement involving Bain Capital Life Sciences, Janus Henderson Investors and Deep Track Capital.

The merged company will operate under the name North Immunology, and its Nasdaq ticker will change to “NRTX.” Athlon Medical shareholders will hold a 4.75% stake in the merged company, while the remainder will be held by North Immunology shareholders, including the private placement participants. If the merged company sells the Hemopurifier business, the proceeds will be shared with Athlon Medical’s existing shareholders.