Mr. Bill Radvak reports
NERVGEN PHARMA ANNOUNCES $500,000 PRIVATE PLACEMENT
Nervgen Pharma Corp. intends to complete a non-brokered private placement, raising up to $500,000 through the issuance of up to 500,000 shares at $1 each.
The net proceeds of the private placement will be directed primarily to advancing Nervgen's lead compound NVG-291 toward clinical development for the treatment of spinal cord injuries. Additionally, the company will advance the underlying patented protein tyrosine phosphatase sigma (PTP) inhibitor technology for additional indications of nerve damage.
All securities issued pursuant to the private placement will be subject to a four-month hold period, and the transaction remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. Nervgen will pay a finder's fee of 7 per cent in cash for funds raised in this private placement.
Advancement of NVG-291
Nervgen is advancing its lead compound NVG-291 toward human clinical studies for the treatment of spinal cord injury (SCI). The company believes this indication is a significant opportunity due to the current lack of non-surgical solutions in the market, the dramatic impact on quality of life and the high-cost burden to the health care system. According to data retrieved from the National Spinal Cord Injury Statistical Center, approximately 17,000 new SCI occur each year, which would place the number of SCI patients whose injuries are six months old or less below the 200,000 threshold for orphan drug designation. Management believes NVG-291 as a therapy could alleviate or improve upon the symptoms and conditions associated with acute spinal cord injury and empower SCI patients to live as actively and productively as possible.
Nervgen plans to initiate a clinical trial for NVG-291 beginning in 2020 under an investigational new drug (IND) application with the U.S. Food and Drug Administration (FDA). The company intends to complete required preclinical non-human studies in 2019 and plans to meet with the FDA in a pre-IND meeting to review its plans for submission of the IND. NVG-291 is manufactured using well-established peptide synthesis procedures. Materials to be used in human clinical trials planned for early 2020 will be manufactured by an approved contract manufacturing organization (CMO) under current good manufacturing practices guidelines enforced by the FDA. Several batches of NVG-291 have been manufactured.
Advancement of the technology
Nervgen plans to work in co-operation with other parties, including academic institutions, contract laboratories and not-for-profit foundations, to conduct additional research to advance the PTP technology for additional applications. Multiple studies with animal models for several diseases and medical conditions have shown that treatment with PTP receptor inhibitors promoted regeneration of damaged nerves and improvement in function.
The company plans to continue researching additional application of the technology. These include: peripheral nerve injury, acute myocardial infarction (AMI, commonly known as a heart attack), multiple sclerosis, stroke and Alzheimer's disease.
About Nervgen Pharma Corp.
Nervgen Pharma is a regenerative medicine company dedicated to the advancement of innovative therapeutics for the treatment of nerve damage, including spinal cord injuries and peripheral nerve injuries. The company plans to create revolutionary technologies that promote nerve regeneration. The company will identify, evaluate and develop other drug candidates for other medical conditions arising from nerve damage.
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