NeuroBo Agrees With Dong-A To Develop DA-1241 & DA-1726 For NASH/Type 2 Diabetes/Obesity

(RTTNews) - NeuroBo Pharmaceuticals, Inc. (NRBO), and Dong-A ST Co., Ltd. have entered into a license agreement for NeuroBo to develop and commercialize DA-1241 and DA-1726, which are currently being evaluated for the treatment of nonalcoholic steatohepatitis or NASH, obesity and type 2 diabetes. NeuroBo will be responsible for global development, regulatory and commercial activities other than for certain Asian-Pacific geographies.

Dong-A will receive an upfront payment of $22 million in series A convertible preferred stock, which will automatically convert into common stock upon receipt of requisite stockholder approval, and will be eligible to receive commercial- and regulatory-based milestone payments. Dong-A will also be entitled to single digit royalties on net sales of the two assets. Dong-A has also agreed to commit $15 million toward financing the assets.

"The acquisition of these two cardiometabolic assets marks a seismic shift for NeuroBo, providing us with a highly promising, diversified pipeline with several upcoming value inflection points in the NASH and obesity space," said Gil Price, President and CEO of NeuroBo.

Shares of NeuroBo are up 59% in pre-market trade on Thursday.